State Clears Rs. 2,155 Cr Arrears for Employees, Pensioners

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The CM Sukhu on Wednesday said that the State Government has so far spent Rs. 2,155 crore on clearing salary, pension and gratuity arrears of employees and pensioners, reaffirming its commitment to their welfare despite severe financial constraints.

Presiding over the State-level function of the Himachal Pradesh Pensioners Joint Front at Ghumarwin in Bilaspur district, the Chief Minister said Pensioner’s Day was not a mere formality but a tribute to the dedication, integrity and sacrifices of retired employees who laid the foundations of a strong administrative system in the State. He added that pensioners continue to inspire future generations through discipline, responsibility and public service.

Reiterating the government’s resolve, he said that the Old Pension Scheme (OPS) was restored in the very first Cabinet meeting after assuming office, despite inheriting a debt burden of Rs. 75,000 crore. The restoration of OPS, he said, has ensured dignity and financial security to 1.36 lakh employees.

The Chief Minister said that arrears left pending by the previous government were being cleared in a phased manner. Full pension and family pension arrears have been paid to pensioners aged 75 years and above, with the present government clearing 80 per cent of arrears as compared to only 20 per cent paid earlier.

He informed that pensioners above 70 years of age have received 70 per cent of their arrears, while those in the 65–70 age group have been paid 38 per cent arrears, involving an additional expenditure of Rs. 75 crore by the present government. Pensioners below 65 years of age have received 35 per cent arrears at a cost of Rs. 110 crore.

The Chief Minister further stated that 20 per cent gratuity arrears have been paid to employees who retired between January 2016 and December 2021. Regarding salary arrears, Rs. 50,000 per employee has been paid to Class-I to Class-III staff and Rs. 60,000 to Class-IV employees, involving Rs. 800 crore. An additional Rs. 20,000 was paid to Class-IV employees in October 2024 at a cost of Rs. 100 crore.

He said the government has also granted the benefit of one year of qualifying service for pension calculation in lieu of five years of daily-wage service to extend pension benefits to Class-IV employees.

Assuring pensioners that their concerns remain a priority, the Chief Minister said all pending arrears would be cleared by 2027 and the upcoming budget would include pensioner-friendly decisions. He appealed for cooperation in view of the State’s serious fiscal challenges.

On the occasion, the Mandi unit of the Pensioners Joint Front presented a cheque of Rs. one lakh to the Chief Minister’s Relief Fund. The Chief Minister also highlighted ongoing systemic reforms and initiatives, including a proposed policy for families displaced by the Bhakra Dam project.

Town and Country Planning Minister Rajesh Dharmani and State President of the Pensioners Joint Front, Atma Ram Sharma, also addressed the gathering and appreciated the steps taken by the present government for the welfare of pensioners and employees.

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