Punjab gives Rs 1,500 cr bonanza to employees, pensioners

Chandigarh, August 27: In a major additional Rs 1,500 crore bonanza for government employees and pensioners in the run-up to the state Assembly polls, the Punjab government has decided to further hike their basic pay by a minimum of 15 per cent over and above the basic pay as on December 31, 2015, in addition to restoration of certain allowances.

With this, the total average increase in salary and pension per employee has gone up to Rs 1.05 lakh per annum, from the earlier Rs 79,250 per annum that they were getting following the government's decision to accept the recommendations of the Sixth Pay Commission with effect from July 1, which had earlier led to a Rs 4,700 crore bonanza for the employees.

The decision on further hike was taken at Cabinet meeting on Thursday, chaired by Chief Minister Amarinder Singh, who directed all ministers, administrative secretaries and heads of departments to talk to their respective employees for early redressal of their grievances.

While all reasonable demands of the employees should be resolved following this announcement, he made it clear that strict action should be taken, as per rules, if the employees continue to agitate.

The Chief Minister appreciated the efforts of Cabinet Minister Brahm Mahindra and others in resolving the grievances of the 2.85 lakh employees and 3.07 lakh pensioners, who will benefit from this decisions, which will cost the government exchequer a total of Rs 42,673 crore per annum.

Amarinder Singh pointed out that all operational allowances have not only been retained but also doubled in absolute terms over what they were being paid earlier, with the Cabinet decision to restore common allowances, such as fixed medical allowance, mobile allowance, conveyance allowance and city compensatory allowance at the revised rates with effect from July 1.