In a move that will benefit the over 5.4 lakh serving and retired state government employees, the Punjab Government, led by Chief Minister Captain Amarinder Singh, has decided to accept the majority of recommendations of the 6th Pay Commission and decided to implement them from July 1, 2021, with retrospective effect from January 1, 2016.
With this decision, the Punjab government has fulfilled another major promise to the people, despite the precarious financial health of the state.
As a result of the decision, the minimum pay for a government employee would 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 percent, resulting in pay scales of all existing employees continuing to be higher than in neighboring Haryana.
With the implementation of the 6th Pay Commission in Punjab, the minimum 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, an official spokesperson said after a Cabinet meeting that gave the approval for implementation of the 6th Punjab Pay Commission (PPC) recommendations.
Under the new structure, a 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 Rs.13,800 crore (approx).
Notably, the Punjab government employees have already been getting 5 percent interim enhancement since 2017. The Net Arrear Amount of employees and pensioners for the year 2016, estimated at Rs. 2,572 crore, shall be paid in two equal installments in October 2021 and January 2022.
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