Photo Source: Babushahi Bureau
Punjab Govt issues guidelines for pay re-fixation after High Court orders; Details Inside
Babushahi Bureau
Chandigarh, January 7, 2026: The Punjab Government has issued detailed guidelines to re-fix (recalculate) the salaries of government employees recruited after July 17, 2020, in compliance with final orders of the Punjab and Haryana High Court. The move aims to correct lower pay fixed under a 2020 order and ensure payment of due salary and arrears.
What Does Pay Re-Fixation Mean?
Pay re-fixation means correcting an employee’s salary from the date of appointment because it was fixed incorrectly earlier. In this case, new recruits were paid less than what Punjab’s own pay rules allowed.
Why Were New Guidelines Issued?
Although the Finance Department had issued instructions in October 2025, departments followed different methods, leading to confusion. The latest circular lays down uniform, step-by-step guidelines to ensure correct and lawful implementation of court orders.
Who Will Be Covered?
- Employees recruited after July 17, 2020
- Employees affected by the 2020 pay restriction order
- Probation and non-probation employees across departments
Key Guidelines Issued by the Finance Department
Guideline 1: Where Departmental Pay Scale Is Lower Than 7th CPC
- Pay will be fixed at the higher 7th Central Pay Commission level
- No recovery will be made from employees
- Applies to most 5th Punjab Pay Commission scales
Guideline 2: Where Departmental Pay Scale Is Higher Than 7th CPC
- Total salary (Basic Pay + DA) will be compared
- Basic pay will be fixed at the same or next higher stage in the 7th CPC level
- Government of India DA rates will be used for comparison
Guideline 3: Rules for Employees on Probation
- During probation, pay will be fixed at Cell-1 of the 7th CPC
- If departmental DC rates are higher, the higher amount will apply
- After probation, pay will be re-fixed as per applicable guidelines
Guideline 4: Dearness Allowance Rates to Be Used
For calculating comparative pay, the following DA rates will apply:
- 28% from November 1, 2021
- 34% from October 1, 2022
- 38% from December 1, 2023
- 42% from November 1, 2024
Guideline 5: Mandatory Verification
- All re-fixed cases must be vetted by SAS Officers or Internal Audit Wings
- Departments must review cases already implemented
Court Rulings Behind the Decision
The guidelines follow final court orders in Dr Saurabh Sharma vs State of Punjab (2024) and connected cases, which directed:
- Pay fixation under Punjab Civil Services (Revised Pay) Rules, 2016
- Payment of arrears from date of appointment
- Strict and uniform implementation