Government orders probe, report to be submitted soon
S Gopal Puri
Shimla:
Chief Minister Thakur Sukhvinder Singh Sukhu has expressed strong displeasure with Finance Department officials over the issuance of a controversial notification withdrawing higher grade pay benefits from employees.
The state government has ordered a probe into the matter and directed that a detailed report be submitted at the earliest. Officials confirmed that action is being considered against the officer responsible for issuing the “erroneous” notification, and the Chief Minister will take a final call once the inquiry findings are submitted.
According to the government, higher grade pay was never meant for future recruits, who upon appointment were to be denied additional increments. However, the Finance Department notification mistakenly extended the withdrawal of benefits to 89 categories of serving employees already availing higher grade pay.
The move sparked unnecessary controversy, forcing the Chief Minister to personally intervene and reassure employees that their existing entitlements would remain intact. On his instructions, the notification withdrawing higher grade pay for current employees was immediately stayed.
Sources said the Chief Minister was upset over the avoidable embarrassment created by the lapse. He made it clear that accountability would be fixed and responsible officers would not be spared.
The Sukhu government has repeatedly positioned itself as employee-friendly. In its very first cabinet meeting, it restored the Old Pension Scheme (OPS), benefitting 1.36 lakh employees. Under OPS, pension amounts have seen a dramatic rise — from merely ₹2,500–₹3,000 earlier to around ₹25,000–₹30,000 per month.
However, the decision has also come at a cost. The state is now facing financial restrictions from the Centre, with a recurring monthly liability of around ₹1,600 crore. In addition, nearly ₹10,000 crore of NPS contributions remain with the Union government, with no refund forthcoming.
For now, while employees have been assured that higher grade pay benefits will continue, the incident has highlighted administrative lapses within the Finance Department. The government’s handling of the probe and accountability measures will be closely watched by both employees and the opposition.
