Sat. Oct 11th, 2025
Punjab Government Halts Regularization of Contract Employees New Policy Signals Shift in Hiring Practices

Punjab Government Halts Regularization of Contract Employees

The Punjab Government Halts Regularization of Contract Employees, deciding to stop the process of making contract employees permanent in government departments. This decision marks a major change in the province’s employment policy, which aims to reduce government expenditure and improve financial discipline. Under this new policy, no government department will be able to make contract employees permanent, which will also change the procedure for future jobs.

Repeal of Regulation of Service Act 2019

The Punjab government has formally decided to abolish the “Regulation of Service Act 2019”. This law was made to regularize contract employees and give them equal rights as permanent employees. However, after the repeal of this law, no contract employee will be allowed to be made permanent legally. This decision has been taken to reduce the financial burden and modernize the government system.

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Punjab Government Halts Regularization of Contract Employees New Policy Signals Shift in Hiring Practices

Complete ban on permanent appointment of contract employees

According to government sources, no government institution in Punjab will have the authority to regularize or make contract employees permanent. This policy will be applicable to all current and future contract employees. The aim of this move is to force government institutions to bring transparency in appointments and to appoint temporary employees on the basis of performance instead of permanent jobs.

New contract appointment model

The government has also decided to introduce a new model for contract appointments. Under this new model, contract employees will not be appointed with a basic salary, but they will be recruited on a lump sum salary system. This will not only reduce the burden on the government exchequer but will also allow attention to be paid to the performance of employees.

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Efforts to reduce financial pressure

The Punjab government has to spend billions of rupees every year on salaries and pensions. This burden was increasing continuously with the increase in the number of permanent employees. The decision not to make contract employees permanent is a major effort to reduce this financial pressure. This will help the government set its financial priorities and use limited resources better.

Other fiscal reform measures

The Punjab government has taken several important steps in recent months to improve financial management, including:

  • 10% ad hoc relief allowance for government employees from Grade 1 to 22
  • 5% increase in pension for retired employees
  • Approval of 30% disparity allowance for contract employees who were not eligible for it earlier

These measures aim to provide temporary relief to existing employees, while a strict policy is being adopted regarding new recruitments.

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By Agahi

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