April 21, 2026

Himachal Announces Temporary Salary Deferral Plan

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The Government of Himachal Pradesh has announced a temporary deferment of a portion of monthly salaries for certain categories of government employees for a period of six months, citing prevailing financial conditions and the need for prudent fiscal management.

As per a notification issued by the Finance (Regulations) Department, the decision will be effective from the salary of April 2026, payable in May 2026, under powers conferred by Article 309 of the Constitution of India.

According to the order, 30% of salary will be deferred for senior officials including the Chief Secretary, Additional Chief Secretaries, Principal Secretaries, senior police and forest department officers such as the Director General of Police and Principal Chief Conservator of Forests.

Similarly, 20% of salary will be deferred for Secretaries, Heads of Departments, senior police officers up to the rank of Superintendent of Police, and forest officers up to the Divisional Forest Officer level.

The government has clarified that both payable and deferred salary components will be clearly reflected in the e-salary system and pay slips to ensure transparency. It further stated that the deferred amount will be counted for pensionary benefits and leave encashment as per existing rules.

Statutory deductions such as income tax and contributions under NPS/UPS/GPF will continue to be calculated on the full salary amount to avoid future discrepancies. However, the deferment will be applied after accounting for such deductions.

The notification also directs boards, corporations, PSUs, autonomous bodies, universities, and other state-aided institutions to adopt similar measures in line with the government decision.

For employees servicing loan instalments, provisions have been made to calculate deferment on the salary remaining after deduction of EMI amounts, subject to submission of an undertaking to the Drawing and Disbursing Officer.

The government has clarified that the deferred portion is not a deduction and will be released later based on the financial position of the state. The measure has been described as temporary and part of a collective effort towards fiscal discipline and resource management.

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