An official said that the Sixth Pay Commission of Punjab has recommended a two-fold increase in the salaries of all state government employees and minimum wage from Rs 6,950 to Rs 18,000 per month with retrospective effect from 1 January 2016.
An official spokesperson of the Chief Minister’s Office said that by 2016, additional expenditure of Rs 3,500 crore is expected to be incurred by the recommendations of the Commission.
The spokesperson said the average increase in salary and pension of employees is less than the 20 per cent limit, which has been increased by 2.59 times as per the recommendations of the Fifth Pay Commission.
As per the recommendations of the Sixth Pay Commission, it is proposed to revise all the major allowances with rationalization of some of the major allowances.
The report, which was recently submitted to Chief Minister Amarinder Singh, has been sent to the Finance Department for detailed study and instructions to be placed before the cabinet this month for further action.
The spokesman said that this report is to be implemented from July 1 as per the commitment of the government in the Legislative Assembly.
The report comes at a time when the state’s economy is already under great stress and the financial situation is precarious due to the COD-19 epidemic with taxes and GST compensation has been eliminated from next year.
The Finance Department will examine various implications before submitting the report to the cabinet for further action.
A significant increase in pension and dearness allowances has been proposed in the report, while the fixed pay allowance and death-cum-retirement gratuity have been doubled under the scheme suggested by the Sixth Pay Commission.
While the fixed medical allowance has been recommended to be doubled to Rs 1,000 per month for employees as well as pensioners alike, the maximum limit for death-cum-retirement gratuity is proposed to be increased from Rs 10 lakh to Rs 20 lakh. .
An increase in ex-gratia grant rates in the case of a government employee’s death, as in the case of a death directly related to the duty performed, is another important recommendation aimed at benefiting public servants.
This is significant in view of the prevailing epidemic crisis, where a large number of government employees are working as frontline workers, many of whom are losing their lives while on duty.
The Commission further recommended that the current system of dearness allowance on the central pattern should continue and that the dearness allowance counted for all purposes, including retirement benefits, should be converted into dearness pay each time the index rises by 50 percent.
For pension, the amendment suggested by the Commission is by application of a simple factor of 2.59.
Further, as per the recommendations of the Commission, on completion of 25 years of qualifying service, pension should be paid at 50 percent of the last payment.
The Commission has suggested that the old age allowance for pensioners and family pensioners should continue on the revised pension at the existing interval of five years from the age of 65 years.
It has also recommended restoring the pension to 40 percent.
Although it is proposed to retain the existing classification of cities categories for HRA, with rationalization in house rent allowance, the commission has recommended introduction of several new allowance categories, including lump sum rate for all employees. Higher education allowance is included. High qualification.
The Commission appointed by the then State Government on 24 February 2016, under the chairmanship of former IAS officer Jai Singh Gill, submitted its report on 30 April 2021.
(Except for the headline, this story has not been edited by NDTV staff and published from a syndicated feed.)