Lahore: The Punjab government has formally abolished the Punjab Regularization of Services Act 2018 and introduced a new system of government recruitment. Now all new recruitments in the province will be on a lump sum pay package, which has done away with the old system of Basic Pay Scale (BPS).
Punjab Finance Ministry officials say that the aim of this decision is to reduce the increasing financial burden of pension and gratuity. The largest share of government expenditure was spent on salaries and pensions, which was limiting resources for development projects.
According to the Finance Department, the new system will help the government in better budget management and a clear reduction in financial pressure is expected in the future.
The notification issued after the approval of the Governor of Punjab states that there will be no impact on the employment of contract employees who have already been regularized, but no new contract employees will be regularized now.
According to sources in the S&GAD department, this policy decision was taken after several months of consultation. The employees included in the new recruitment will be given a fixed monthly salary, but they will not get pension or other retirement benefits.
