In a move that will benefit over 5.4 lakh serving and retired government employees in the state, the Punjab Government has decided to accept the recommendations of the 6th Pay Commission and implement them from July 1.
The decision will be implemented with retrospective effect from January 1, 2016.
This decision, however, will lead to an annual additional burden of Rs. 8,637 crore to the state exchequer, with a prospective additional net annual burden expected to be Rs. 4,700 crore.
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, officials said.
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
The approval for the same was given at the cabinet meeting held today.
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 Government has also accepted the restoration of Commutation of Pension to 40% w.e.f. 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.
New employees will, however, be paid as per the central government pay scales, which now apply to all new recruits.