Pre-poll bonanza for 5.4L govt employees; Punjab to implement 6th pay panel report

With retrospective effect from January 1, 2016

Pre-poll bonanza for 5.4L govt employees; Punjab to implement 6th pay panel report

Amarinder Singh. Tribune file photo

Tribune News Service
Chandigarh, June 18 

Punjab government implement recommendations of the Sixth Punjab Pay Commission, officials said on Friday. 

A press release said that the state government under Chief Minister Amarinder Singh has decided to accept most of the commission's recommendations, and will implement them on July 1, 2021, with retrospective effect from January 1, 2016. 

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The move is likely to impact 5.4 lakh serving and retired state government employees, the press note said. 

The decision was taken at a cabinet meeting.

The decision means that the minimum pay for a government employee will increase from Rs  6,950 per month to Rs 18,000 per month. The implementation will entail 2.59 times increase in salaries and pensions over the previous pay commission recommendations, with an annual increment rate of 3%, resulting in pay scales of all existing employees.

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Pension will go up from Rs 3,500 to Rs 9,000 per month, and the minimum Family Pension would increase to Rs 9,000 per month under the revised structure. Divorce/widowed daughter shall be eligible for family pension, and the eligibility criteria of income for family pension has been enhanced from Rs  3,500+DA to Rs 9000+DA per month.

The expected amount of Net Arrears from January 1, 2016, to June 30, 2021, is estimated to be around Rs 13,800 crore.

Punjab government employees have already been getting 5 per cent interim enhancement since 2017. The Net Arrear Amount of employees and pensioners for the year 2016, estimated at Rs 2,572 crore, will be paid in in two equal installments in October 2021 and January 2022.

The government has also accepted restoration of Commutation of Pension to 40 per cent with effect from July 1, 2021. Death-cum-Retirement Gratuity (DCRG) has been enhanced from Rs.10 lakh to Rs.20 lakh and the existing rates of Ex-Gratia Grant have been doubled. Both the DCRG and Ex-Gratia have been extended to employees covered under New Pension Scheme.

An official spokesperson said after the cabinet meeting that the implementation of the pay commission’s major recommendations will lead to an annual additional burden of Rs 8,637 crore to the state exchequer, with a prospective additional net annual burden expected per annum to be Rs. 4,700 crore.

The Sixth Punjab Pay Commission report had submitted the first part of its report to the Punjab government on April 30, 2021, broadly comprising the recommendations on revision of pay scales, allowances, and pension and retirement benefits.

Percentage-based allowances, like House Rent Allowance, NPA etc. have been rationalised under the new structure, while Design Allowance, Special Allowance to Chowkidars and Special Allowance to Drivers, has been doubled.

A new allowance—Higher Education Allowance—in the form of a lump sum incentive to all employees who attain higher educational qualification during the course of employment and in the field directly relevant to an employee’s job, is being introduced by the Government.

New employees will, however, be paid as per the central government’s pay scales, which now apply to all new recruits.

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