The Himachal Pradesh government will disburse state employees’ salaries, pensions, and pending Dearness Allowance (DA) on October 28, ahead of Diwali. Chief Minister Sukhvinder Sukhu announced on Friday that the DA, calculated at 4 per cent and pending since January 1, 2023, will be cleared. Additionally, the government will settle employees’ pending medical reimbursement bills.
The decision to release the salaries early was made to ensure employees receive their payments before Diwali. Salaries were previously delayed to impose financial discipline, as the state’s Revenue Deficit Grant and tax share from the Centre are received in early September. According to Sukhu, paying salaries on the first day of every month often required borrowing at 7.5 per cent interest, costing the state around Rs 3 crore per month and Rs 36 crore annually in interest payments.
Approximately 1.15 lakh employees have opted for the Old Pension Scheme, while 1,364 have chosen the New Pension Scheme (NPS). The state government has decided to extend the pending DA to employees under both pension schemes.
Sukhu also criticized the previous BJP government, accusing them of causing financial strain with Rs 5,000 crore in “freebies” before the last election. He pointed to decisions like offering free power up to 125 units, free water in rural areas, and the opening of multiple government institutions as financially detrimental.
Despite these challenges, Sukhu emphasized that the free power scheme remains in place, with metered water charges now applied to commercial establishments. He reaffirmed the government’s goal to make Himachal Pradesh self-reliant by 2027.
