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Major policy change: Himachal Pradesh will pay full dues of employees

Himachal Pradesh removes 2012 ceiling on payment of dues, pressure on treasury due to court-mandated payment of dues.

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Major policy change: Himachal Pradesh will pay full dues of employees
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Diary Timees News Service

Shimla, August 4: In a significant development for government employees in Himachal Pradesh, the state government has removed the ceiling on payment of pay-related and other dues, making lump sum payments possible. The decision comes after a series of court orders mandating such payments, which forced the state to revise its earlier phase-wise payment guidelines.

In January 2012, the finance department had imposed ceilings on payment of dues to manage the state budget more effectively. Under these guidelines, dues less than ₹50,000 were to be paid in a lump sum, while amounts between ₹50,000 and ₹1,00,000 were to be paid in three installments. For dues above ₹1,00,000, payments were to be made in five instalments. These measures were aimed at preventing an immediate heavy burden on the state exchequer.

However, several cases challenging these ceilings were filed in court, and the High Court consistently ruled in favour of lump sum payments. The persistent judicial pressure and subsequent court orders led the government to change the policy.

Following the court’s directions, the state government has now decided to allow lump sum payments for all pending cases with specific court orders. Principal Secretary (Finance), Devesh Kumar, has issued directions to all departments, organisations and public sector undertakings (PSUs) to strictly follow the new guidelines.

The finance department has admitted that the lump sum payment will put a huge burden on the state’s finances, but compliance with court orders is mandatory. This provision applies only to cases that have clear court orders.

This policy change provides a major relief to state government employees awaiting pending payments, ensuring that they get their dues without any delay. The decision to lift the ceiling reflects the influence of the judiciary in protecting the rights of employees. However, this also raises concerns about the potential pressure it could put on the state’s financial health.

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