Himachal Pradesh Government Allocates ₹2,155 Crore for Employee and Pensioner Arrears

Chief Minister's Address at Pensioners' Day Celebration

Shimla
During a recent event held by the HP Pensioner Joint Front in Ghumarwin, Bilaspur district, Chief Minister Thakur Sukhvinder Singh Sukhu emphasized that Pensioner’s Day serves as a significant occasion to recognize the dedication and contributions of those who have bolstered the administrative framework of Himachal Pradesh through their integrity and commitment.

The Chief Minister noted that the current strength of institutions and the effectiveness of the administrative system are a testament to the relentless efforts and valuable experiences of retired employees.

He remarked that pensioners not only enhance government operations but also exemplify discipline, accountability, and public service, setting a standard for future generations. The government, he affirmed, remains deeply appreciative of their substantial contributions.

Reinforcing the government's dedication to the welfare of employees and pensioners, Sukhu mentioned that shortly after taking office, the administration reinstated the Old Pension Scheme (OPS) during its first Cabinet meeting, despite facing financial hurdles and a debt of ₹75,000 crore inherited from the previous administration.

The Chief Minister highlighted that the revival of the OPS has instilled dignity, security, and confidence in 1.36 lakh employees. He also stated that the backlog of salary and pension arrears left by the former government is being addressed systematically.

He detailed that pensioners aged 75 and above have received full payment of their pension and family pension arrears as a priority. While the previous government had disbursed only 20% of these arrears, the current administration has managed to pay 80%.

For pensioners over 70 years old, 70% of their total arrears have been settled, with the current government providing 50% compared to the 20% offered by the previous regime. The remaining 30% for this age group is expected to be paid within 40 days, according to the Chief Minister.

Additionally, pensioners aged between 65 and 70 have received 38% of their arrears, with the current government contributing an extra 18% over the previous 20%. This involved an expenditure of ₹75 crore. For those under 65, 35% of arrears have been paid, with an additional 15% provided by the government, costing ₹110 crore.

The Chief Minister also mentioned that 20% of gratuity arrears have been disbursed to employees who retired between January 1, 2016, and December 31, 2021. Regarding salary arrears, ₹50,000 has been paid to Class-I to Class-III employees and ₹60,000 to Class-IV employees, totaling an expenditure of ₹800 crore. An additional ₹20,000 was allocated to all Class-IV employees on October 19, 2024, costing ₹100 crore.

To date, the State Government has allocated ₹2,155 crore for the arrears of employees and pensioners. The Chief Minister assured that as revenue improves, outstanding arrears and liabilities will be prioritized for clearance.

He urged pensioners to support the government's initiatives aimed at enhancing the State’s financial health, acknowledging the serious fiscal challenges ahead. Sukhu assured that all pension arrears would be settled by 2027 and that the forthcoming budget would include beneficial measures for pensioners.

During the event, the Mandi unit of the Pensioners Joint Front contributed a cheque of ₹1 lakh to the Chief Minister’s Relief Fund.

The Chief Minister also discussed various initiatives under the government’s reform agenda, including a policy to assist families displaced by the Bhakra Dam project in Bilaspur.

In his address, he criticized the central government, claiming that BJP leaders, including Union Minister Jagat Prakash Nadda, were misrepresenting financial assistance figures for Himachal Pradesh and neglecting the State’s interests.

Town and Country Planning Minister Rajesh Dharmani welcomed the Chief Minister and expressed gratitude for the development projects worth ₹69 crore dedicated to the Ghumarwin area. He acknowledged the Chief Minister's efforts to maintain fiscal discipline and create new revenue streams while implementing various welfare schemes.

Atma Ram Sharma, the State President of the Himachal Pradesh Pensioners Joint Front, welcomed the Chief Minister and praised the financial benefits provided by the current government while also highlighting the pending demands of pensioners.

Other dignitaries present included Ayush Minister Yadvinder Goma, Political Advisor to the Chief Minister Sunil Sharma ‘Bittu’, Member of the State Women Commission Reena Pundir, Chairman APMC Satpal Vardhan, former MLAs Tilak Raj and Bumber Thakur, Congress leader Vivek Kumar, and office-bearers of the Pensioners Joint Front.