The Government of Punjab has given its nod to the implementation of the Sixth Pay Commission with effect from January 1, 2016. Most of the recommendations of the Commission will be implemented, which will benefit over five lakh existing and retired government employees. The two-fold hike has been approved despite the state’s coffers being in a delicate financial state.
Henceforth, the minimum pay for all employees will be Rs 18,000 per month. Earlier, it was Rs 6,950. The arrears will be paid in two instalments in October 2021 and January 2022. The salaries and pensions will begin from July 1, 2021.
With the implementation of the recommendations of the Sixth Pay Commission, salaries and pensions will be hiked 2.59 times, along with a yearly hike of three per cent. These increments will cost the state government about Rs 8,637 crore and add a yearly burden of about Rs 4,700 crore.
The minimum pension will now be Rs 9,000 per month. Earlier, it was Rs 3,500 per month. The minimum family pension, to which divorcees and widows are eligible, will be Rs 9,000 per month.
Watchmen and drivers will get double the amount of special allowance. House rent allowance and other benefits have been rationalised.
Employees will also get a lump-sum amount toward higher education. This will be an incentive for them to study further and get degrees relevant to their jobs, while working.
Salaries of all new hires, however, will be as per the Centre’s pay scales.