Chandigarh, June 18: 

•  In a move that may benefit the over 5.4 lakh serving and retired government employees within the state, the Punjab Government, led by Chief Minister Captain Amarinder Singh, has decided to simply accept the 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.
• With this decision, taken today at the state cabinet meeting, the Captain Amarinder government has fulfilled another major promise to the people, despite the precarious financial health of the state. 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. The implementation will entail 2.59 times increase in salaries and pensions over the previous pay commission recommendations, with an annual increment rate of three, leading to pay scales of all existing employees continuing to be on top of in neighboring Haryana. 
• With the implementation of the 6th Pay Commission, the minimum pension will go up from Rs.3,500 to Rs.9,000 per month, and therefore the minimum Family Pension would increase to Rs. 9,000 per month under the revised structure, a political candidate spokesperson said after a cabinet meeting that approved the implementation of the 6th Punjab Pay Commission (PPC) recommendations. Under the new structure, divorce/widowed daughter shall be eligible for family pension, and also 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 (approx). Notably, the Punjab government employees have already been getting 5% interim enhancement since 2017. internet 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 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 therefore the existing rates of Ex-Gratia Grant are doubled. Both the DCRG and ex gratia have been extended to employees covered under New Pension Scheme. An official spokesperson said after the cabinet meeting that the implementation of the Pay Commission’s major recommendations will cause an annual additional burden of Rs. 8,637 crore to the state exchequer, with prospective additional net annual burden expected every year to beRs. 4,700 crore (approx.).
• It may be recalled that the 6th PPC report had submitted the primary part of its report back to the Punjab government on April 30, 2021, broadly comprising the recommendations on revision of pay scales, allowances, and pension & retirement benefits.
• It has been decided that the date of implementation of the new allowances/revised allowances would be from 01.07.2021. Percentage-based allowances, like House Rent Allowance, NPA, etc. are rationalized under the new structure, while Design Allowance, Special Allowance to Chowkidars, and Special Allowance to Drivers, have been doubled.
• A new allowance – educational activity Allowance, within the kind of a lump sum incentive to all or any employees who attain higher educational qualification during employment and within the field directly relevant to an employee’s job, is being introduced by the govt.
• New employees will, however, be paid as per the central government pay scales, which now apply to all or any recruits.