CHANDIGARH: Citing 'extraordinary financial challenges' and "prudent fiscal management', the Himachal Pradesh Government has temporarily deferred up to 30 per cent of the salaries of senior government employees for a period of six months.
According to the notification issued by the state government the chief secretary, additional chief secretaries, principal secretaries, director general of police, and top forest officials will see 30 per cent deferral of their salaries. Meanwhile, the secretaries, heads of departments, inspectors general of police, and forest officers up to divisional forest officer level, will face a 20 per cent deferral.
The state government has asked the public undertakings, boards universities and autonomous bodies to follow suit.
"The Governor of Himachal Pradesh ... in exercise of the powers conferred under proviso to Article 309 of the Constitution of India, is pleased to order temporary deferment of a portion of the monthly salary of certain categories of government employees for a period of six months, effective from the salary of April to be paid in May, 2026," stated the notification.
It further read, "The payable and deferred components of salary shall clearly be reflected in the e-salary system and pay slips to ensure transparency."
The full amount of salary will be considered for calculation of all benefits and statutory deductions only to avoid future accounting issues.
Sources further added that, for employees who are repaying loans, the deferment will be calculated on the pay remaining after the deduction of the loan installment amount. Such employees will have to submit undertakings to their drawing and disbursing officers.
As per this notification, 50 per cent of the Chief Minister’s salary, 30 per cent of the salaries of the Deputy Chief Minister, Ministers, the Speaker and Deputy Speaker of the Legislative Assembly, and 20 per cent of the salaries of all Members of the Legislative Assembly will be deferred for the next six months.
This decision was taken under Articles 162 and 166 of the constitution. The government clarified that the measure is a deferment and not a deduction, and the withheld amount will be released at a later stage, depending on the financial condition of the state.
The announcement has been made in line with a notification issued by the General Administration Department, the decision has been taken with the approval of the governor under the provisions of the constitution of India to ensure prudent fiscal management.
While presenting the Budget for 2026-27 on March 21, CM Sukhu had announced the cut in salary in view of the grim financial health of the state.
While announcing the cut, he had specifically mentioned that it is following the discontinuation of the Revenue Deficit Grant (RDG) by the Centre that the state is facing financial crisis as it would be poorer by at least Rs 8,000 crore annually. He had said that with the recommendation of the 16th Finance Commission to stop grant of RDG to 17 states, including Himachal, the state would have to take harsh steps and cut costs.