Govt fears Rs 9K-cr annual payout

Ruchika M Khanna

Tribune News Service

Chandigarh, September 15

The cash-strapped Punjab government faces the fear of another liability of over Rs 9,000 crore per annum, after the Punjab and Haryana High Court quashed the recruitment policy of the state, giving fixed pay to probationers.

Though these orders of a division Bench of the Punjab and Haryana High Court have been given in a case filed by employees of Punjab State Power Corporation Limited (PSPCL), top officials in the government say that considering similar petitions filed by probationers of the state government and apex court orders regarding equal pay for equal work, they too will have to give all emoluments to their probationers sooner or later. Finance Minister Manpreet Singh Badal, however, insists that the order passed by the court two days back, is not binding on all state government probationers, and relevant only for PSPCL.

Interestingly, it is perhaps this fear of the court judgment binding on the state that has prompted the Finance Department to ask PSPCL to file an appeal against the High Court order as soon as possible. The issue was discussed during a meeting between officers of the two departments held yesterday.

There are almost 30,000 probationers of the state government recruited since January 15, 2015, when the decision to give basic pay (minimum of the pay band of the said post) was taken by the then Akali BJP government. The decision was taken to cut down on government expenditure, mainly on the payment of salaries (which is now Rs 25,708.54 crore per annum) and accounts for almost 35 per cent of the state’s total annual revenue receipts( Rs 73811.86 crore).

Officials in the Finance Department have told The Tribune that around 27,000 employees had been recruited on the probation basis by the government since January 2015. Initially, the probation period was for two years, but on September 15, 2016, the probation period was increased to three years. Since then, the minimum salary offered to a Class IV probationer had been Rs 5,900 per month and the highest Rs 15, 900 per month to a Class I probationer.

“The average annual increase in salary of a probationer, if all emoluments are to be given, would be Rs 3.50 lakh. The annual liability on salaries could increase by Rs 9400 crore,” said a senior officer. If the orders for a full salary are implemented, the total amount going for payment of salaries to employees alone would be Rs 35,000 crore — 47.5 per cent of the state’s total annual income.

27K recruited since 2015

• In January, 2015, the then Akali-BJP government decided  to give newly recruited staff basic pay for first three years. 
• Initially, the probation period was for two years, but on September 15, 2016, it was increased to three years.
• The minimum salary offered to a Class IV probationer is Rs 5,900 per month and the highest Rs 15,900 per month to a Class I probationer.
• Around 27,000 employees have been recruited on probation since January 2015.