On Friday, the Congress government in Punjab decided that the majority of its sixth pay commission recommendations, which would benefit over 500,000 servants and pensioners, would be implemented with effect from 1 January 2016 in Punjab. The decision was taken in a cabinet meeting led by Captain Amarinder Singh, Chief Minister, and comes just before the Punjab elections will take place next year.
“The move will benefit over 540,000 serving and retired state government employees,” an official statement said, adding it was approved by the government despite the “precarious financial health” of Punjab.
This is what you need to know about the double wage increase:
- Mindestate pay is now to be increased from 6.950 to 18.000 per month for all Punjab employees of the government. In October of this year and in January 2022, the Hindustan Times reported on Friday the delays will be payable in the same instalments.
- The new structure will commence the disbursement of wages and pensions on 1 July of this year.
- The sixth pay commission’s recommendation would involve a 2,59-fold increase in pay and pension pay over the previous pay commission’s recommendations, with an annual 3% increase, resulting in a continuing higher level of pay for all current staff than that of Haryana, according to the official statement.
- The statement added that the decision placed the exchequer with an added net annual burden estimated to be almost ~~~8.637 CroRE with a prospective net burden.
- The minimum pension is to rise now from CHF3,500 to CHF9,000 per month, with the family minimum pension to CHF9,000 per month.
- The family pension will apply to divorced persons and widows.
- In addition, from July this year the Punjab Government agreed to restore the commutation of pension to 40%.
- Under the new structure, house rent allowance and other benefits have been streamlined. The watchmen and drivers have doubled their special allowance.
- The Punjab government is introducing a higher education allowance in the form of a lump-sum incentive for employees who earn a higher education degree in a field directly related to their job during their employment. However, in accordance with the salary scales currently applicable to all new employees, new employees will be paid.
