Punjab Government has decided to accept majority of the recommendations of the 6th Pay Commission and decided to implement them from July 1, 2021, with retrospective effect from January 1, 2016. This move will benefit over 5.4 lakh serving and retired state government employees in Punjab.
Now, 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%.
With implementation of the Pay Commission, minimum pension will go up from Rs 3,500 to Rs 9,000 per month and minimum Family Pension would increase to Rs 9,000 per month under the revised structure, said an official spokesperson after the Cabinet meeting.
Under the new structure, 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 (approximately). Notably, the Punjab government employees have already been getting 5% 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.
The government has also accepted restoration of commutation of pension to 40% wef July 1, 2021.
Death-cum-Retirement Gratuity (DCRG) has been enhanced from Rs 10 lakh to Rs 20 lakh and the existing rates of ex-gratia grant have been doubled. Both the DCRG and Ex Gratia have been extended to employees covered under New Pension Scheme.
Percentage based allowances, like house rent allowance, NPA etc, have been rationalised under the Pay Commission, while design allowance, special allowance to chowkidars and special allowance to drivers, has been doubled.
A new allowance – Higher Education Allowance, in the form of a lump sum incentive to all employees who attain higher educational qualification during the course of employment and in the field directly relevant to an employee’s job, is being introduced by the government. New employees will, however, be paid as per the central government pay scales, which now apply to all new recruits.
