Punjab government promises 15% hike to over 2 lakh employees

This will cost the state exchequer an additional Rs 5,692 crore, as the increment will come into effect from July 2021


The Government of Punjab will give a 15 per cent increment to its employees, with effect from July 2021. This means, allowances will actually double and result in a significant financial gain for each employee. Each employee has been promised a minimum hike in salary of 15 per cent and all allowances will be restored at revised rates. For some time now, the employees’ unions have been protesting and imploring that the state government meet their demands and resolve their issues with regard to the implementation of the 6th Pay Commission.

The unions have yet to accept the final proposal and are not falling for these assurances right away. They have asked for a few days’ time to deliberate on the assurances. They feel that the state government has only issued clarifications pertaining to the pay commission and has ignored the other demands, such as restoration of old pension scheme and regularisation of contractual staff.

The proposal offers an additional hike of Rs 1,000 crore in salaries and allowances over and above the Rs 4,692 crore that was recommended for the by the Sixth Pay Commission. That means, the state will have to bear an additional burden of Rs 5,692 crore this year, given that there are over two lakh employees and more than three lakh pensioners in the state.

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