Shimla: A two-day cabinet meeting of the Himachal Pradesh government, chaired by Chief Minister Sukhvinder Singh Sukhu, begins on Monday (May 5, 2025), marking the first time a cabinet session will be held over two consecutive days.
Key issues on the agenda include a proposal to increase the retirement age of government employees from 58 to 59 years, changes to pension commutation benefits, restructuring of job recruitment policies and addressing pending compassionate appointment cases.
The proposal to raise the retirement age by one year is based on the recommendations of a cabinet sub-committee formed to explore ways of increasing revenue and improving the state’s financial condition.
Govt looks to defer Rs 3,000 crore retirement liabilities
By delaying retirements, the state government hopes to defer pension liabilities worth approximately Rs 3,000 crore for one year.
However, such a move may impact employment opportunities for job seekers, a concern that will be part of the detailed cabinet discussions.
If the retirement age is not extended, the government might proceed with the retirement of employees in the education department as scheduled on March 31.
Another proposal on the table is to discontinue 40 per cent commutation of pension, which would prevent employees from receiving that portion of their pension as a lump sum at the time of retirement, a move also aimed at easing immediate fiscal pressures.
Job policy reforms likely on agenda
Job policy reform is also expected to be a key topic. The cabinet is likely to consider hiring new employees as probationers or trainees instead of under the 2003 contract policy, which has been discontinued.
These new recruits would receive nominal salaries during their probationary period, similar to earlier contractual terms.
Additionally, the cabinet may finalise the fee structure for applications submitted to the Himachal Pradesh Staff Selection Commission for various posts.
The long-pending compassionate appointment cases are also expected to be discussed, in line with the CM’s commitment made during the recent assembly session to resolve all such matters in one go.
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