Punjab State Government Employees Salary and DA Updates- 6th Punjab Pay Commission Report

The 6th Pay Commission of Punjab was formed by the SAD-BJP government in 2016. Further congress comes into power in 2017 and has since then extended the term of commission multiple times. The updates about the implementation of pay commission and payment of dearness allowance to Punjab State Government Employees are shared here.

Submission of Pay Commission Report to Punjab State Government

(May 5, 2021) The 6th pay commission of Punjab, headed by Sh Jai Singh Gill has submitted its report to the Punjab State Government on 30th April 2021. As per an official of the Chief Minister's office, the key recommendations are as under:

Increase in Salaries and Pensions

The minimum pay is proposed to increase from Rs. 6950 per month to Rs. 18000 per month. The increase in salaries is recommended with 2.59 times the increase under the 5th pay commission of Punjab leading to an average increase of 20% in the salaries. The pensions are recommended to increase by a multiplication factor of 2.59.

The revision in salaries and pension is recommended from January 1, 2016.


Increase in Other Allowances

Rationalization in certain allowances has been recommended with other major allowances proposed for an upward revision.

The fixed medical allowance is recommended at Rs. 1000 (100% increase) for both salaried and pensioners. The design allowance for engineers and Kit care allowance for police personnel are recommended to be doubled. The mobile allowance for all employees is recommended at Rs. 750.00 per month (100% increase) as against the present allowance of Rs. 375 per month.

The existing classification of cities for HRA is proposed to continue. Commission has recommended for introduction of lump sum higher education allowance for higher studies along with many new allowances.

The revision in allowances is recommended from the date of Punjab state government notification in this respect.


Other Recommendations

The limit of gratuity is recommended to increase from the present Rs 10.00 lacs to Rs. 20 lacs. The exgratia grant in case of the unfortunate death of an employee is also recommended for an upward revision.

The pensions are recommended at 50% percent of last pay drawn after a service of 25 years with an old age allowance from the age of 65 with an interval of 5 years in line with existing guidelines. The commutation of pension is recommended to be restored at 40%.

Commission has recommended for conversion of dearness allowance in to pay for all purposes including retirement benefits whenever the index increases by 50 percent.


Further Course of Action

In the budget session, the State Finance Minister Manpreet Singh Badal had informed that the 6th Punjab pay commission report shall be implemented from July 1, 2021. The report has been sent to the finance ministry for analysis and to place to the cabinet for a final decision on the recommendations of the commission.

The same is expected by end of May 2021. The additional expenditure on account of implementation of the 6th pay commission is expected to be Rs. 3000 Cr- Rs. 3500 Cr per annum.

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Extension in term of 6th Pay Commission of Punjab

(April 29, 2021) The Punjab state government has extended the term of pay commission of Punjab till 31st May 2021 or submission of report by the commission whichever is earlier. The term of the commission has been extended multiple times in the past four years last till April 30, 2021. 7 lac Punjab government employees and pensioners are waiting for the implementation of pay commission since 2016.

(April 2, 2021) The term of pay commission has been further extended till April 30, 2021. The term was previously extended up to March 2021.

Implementation of 6th Pay Commission from July 2021

(March 9, 2021) Punjab Finance Minister, Manpreet Singh Badal, while presenting the budget has announced that the 6th pay Commission of Punjab shall be implemented from July 1, 2021. A provision of Rs. 9000 Cr has been made in the budget for the same. The arrears shall be paid in installments in October 2021 and January 2022.

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