Punjab government reverses extension given to employees over 58 years of age

Sources said the state finance department has prepared a proposal in this regard, which will soon be placed before the state cabinet. 

Published: 22nd July 2017 08:00 PM  |   Last Updated: 22nd July 2017 08:00 PM   |  A+A-

Punjab Chief Minister Captain Amarinder Singh. | File Photo

Express News Service

CHANDIGARH: The Congress-led Punjab government has decided to lower the retirement age from 60 to 58 years, reversing the previous Shiromani Akali Dal-BJP government's order giving a two-year extension to the employees who have completed 58 years of age.

Sources said the state finance department has prepared a proposal in this regard, which will soon be placed before the state cabinet. 

As per the proposal, all the employees who are over the age of 58 and are on an extension will be relieved of their duties on July 31. 

The government will have to spend Rs 2,500 crore in retirement benefits for them over the next six months. However, the move will help it save Rs 750 crore per year on salaries. 

The government is of the view that the move will help create employment opportunities for the youth.  

A government official said that by removing the employees who are on extension, the government can give jobs to youth at one-third of the present expenditure.

At present, the government spends around 75 per cent of its budget on salaries of employees.

Earlier, Punjab chief minister Capt Amarinder Singh said that his government was mulling a policy change to fix 58 as retirement age to generate more employment opportunities for the state’s youth. 

During elections, the Congress in its manifesto has stated that if voted to power it will create and give jobs to youth in the state.

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