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Punjab govt to bring over 65,000 outsourced employees under direct contract system

The Punjab government has announced a major relief for outsourced employees by ending the contractor system and bringing over 65,000 workers under direct government contracts

Reported by:  PTC News Desk  Edited by:  Jasleen Kaur -- May 30th 2026 04:56 PM
Punjab govt to bring over 65,000 outsourced employees under direct contract system

Punjab govt to bring over 65,000 outsourced employees under direct contract system

PTC Web Desk: In a major decision aimed at providing relief to outsourced employees across Punjab, the government led by Chief Minister Bhagwant Mann has announced a new policy to bring thousands of workers directly under the government contract system by ending the existing contractor-based arrangement.

Under the new policy, more than 65,000 outsourced employees working in various departments of the Punjab government will gradually be shifted from private contractor control to direct contractual engagement with the government. The move is being seen as one of the biggest employee welfare reforms introduced by the state government in recent years.


According to the policy framework prepared by the government, outsourced employees who have completed five years of continuous service will become eligible to be brought directly under government contracts. The decision is expected to provide immediate benefit to nearly 26,400 employees, who will now work directly under the Punjab government instead of private contractors.

The government has also made special provisions for employees working in hazardous and high-risk duties. For such workers, the minimum service requirement has been reduced from five years to three years. This means employees involved in risky assignments will become eligible for direct government contracts after completing three years of service.

Officials said the new arrangement is designed to improve job security and ensure better financial transparency for employees. With the contractor system set to be removed, salaries will now be transferred directly into employees’ bank accounts without intermediary deductions.

The policy also ensures that all contract employees will receive statutory benefits, including Provident Fund (PF), Employees’ State Insurance (ESI) and gratuity benefits as per labour laws.

In another important safeguard for employees, departments will no longer be able to terminate workers arbitrarily. Before removing any employee, authorities will be required to provide written reasons and offer the worker an opportunity to present their side during a proper hearing process.

- PTC NEWS

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