LAHORE: The Punjab government has moved to recruit new employees on a lump sum pay package instead of the basic pay scale, a decision that will make them ineligible for pensions, with the goal of reducing the financial burden on the provincial exchequer.
This major policy shift is effective following the promulgation of the Punjab Regularisation of Service (Repeal) Ordinance 2025 on October 31. The ordinance, which was tabled in the Punjab Assembly on Monday, repeals the Punjab Regularisation of Service Act 2018.
The repealed 2018 Act had previously allowed contractual employees to be considered for regularisation after four years of continuous service. By immediately doing away with this law, the new ordinance blocks the regularisation path for contractual staff. The officials confirmed that employees recruited under the new policy will remain on a contract basis for the rest of their service and will not be entitled to a pension.
The move has reportedly caused some confusion regarding the status and potential regularisation of existing contractual employees appointed before the ordinance, with differing opinions among officials on whether they will be impacted. A senior civil servant commented on the change, suggesting the government should offer either regular job options or market-competitive salaries to attract and retain quality human resources.
