Punjab Regularization of Service Repeal 2025
The Punjab government has officially repealed the Punjab Regularization of Service Act 2018 and introduced a new ordinance known as the Punjab Regularization of Service Repeal Ordinance 2025. This major change will reshape how new government employees are hired and paid across the province. Instead of being appointed under the traditional Basic Pay Scales system, all new appointments will now be made under a lump-sum pay package.
The new policy, which takes effect from October 31, 2025, has already been approved by the Governor of Punjab and published in the official Gazette. The decision aims to reduce the growing financial pressure on the provincial treasury, especially the ever-increasing pension liabilities.
What the Punjab Regularization of Service Repeal 2025 Means
The Punjab Regularization of Service Act 2018 allowed contractual employees who completed a certain period of service to be regularized into permanent government jobs. This act provided long-term job security and access to pension and other retirement benefits.
However, under the Punjab Regularization of Service Repeal Ordinance 2025, this system has been abolished. From now on, no new recruitments will be made under the regularization policy. Instead, all new employees will be hired on a contractual basis with a fixed or lump-sum pay package.
Importantly, those employees who were already regularized under the 2018 Act will remain unaffected. Their service status will continue as per the previous law, and their pension and benefits will not be disturbed.
Why the Punjab Government Repealed the 2018 Act
The government’s official reasoning behind this move is clear: to reduce the heavy financial burden of pensions on the provincial exchequer. Over the past few years, pension costs have increased rapidly, consuming a large portion of Punjab’s budget.
By introducing lump-sum pay packages instead of permanent job structures, the government aims to make public sector employment more financially sustainable. This system will allow the government to control future pension liabilities while still offering competitive pay to new hires.
Lump-Sum Pay Package vs Basic Pay Scale
Under the old Basic Pay Scale system, government employees received a fixed monthly salary, annual increments, and pension benefits after retirement. Their pay increased with experience and promotions, and pension was guaranteed based on years of service.
The lump-sum pay package, however, works differently. Employees will receive a fixed salary amount that will not follow the traditional pay scale or pension structure. There will be no future pension or gratuity after the end of service. The government may revise the package occasionally, but there will be no automatic increments or long-term pension obligations.
In simple words, the new policy shifts from a permanent job model to a contractual employment system. This means more flexibility for the government but also fewer long-term benefits for new recruits.
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Who Will Be Affected by the Repeal
The Punjab Regularization of Service Repeal Ordinance 2025 applies only to new appointments made after October 31, 2025. All departments, including education, health, local government, and administration, will follow this policy for future hiring.
Employees who have already been regularized under the Punjab Regularization of Service Act 2018 will not be affected. Their existing employment status, salaries, and pension rights will remain intact.
However, all upcoming vacancies and new job announcements will be made under the lump-sum pay system, and applicants will need to review the terms of their contracts carefully before applying.
Legal and Procedural Details
The new law, titled the Punjab Regularization of Service Repeal Ordinance 2025, was issued with the approval of the Governor of Punjab and has been officially notified through the Gazette. The notification confirms that the ordinance will take effect from October 31, 2025.
This repeal officially cancels the previous 2018 Act, meaning that no future regularization of contractual employees will take place under the old law. The ordinance may later be converted into a full-fledged act after approval from the Punjab Assembly.
Impact on Recruitment and Public Services
This shift is expected to bring major changes to the recruitment and HR system of Punjab’s government departments. On one hand, it may help control rising pension costs and create a more efficient budgeting structure. On the other hand, it may also discourage candidates seeking long-term job security.
Analysts believe that this new model will encourage performance-based employment and give the government flexibility in managing its workforce. However, many job seekers might find the lack of pension and permanent status less appealing compared to the old system.
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What Job Seekers Should Do Now
If you are planning to apply for upcoming government jobs in Punjab after October 2025, here are a few important things to keep in mind:
- Read the job advertisement carefully and check if the position is on a lump-sum pay basis.
- Ask for written details of the salary package, duration of contract, and renewal policy.
- Clarify pension or end-of-service terms before joining.
- Keep copies of your offer letter and appointment order for future reference.
- Stay updated with official notifications and government circulars for any amendments.
By understanding these new changes in advance, job seekers can make informed career decisions and avoid confusion about their employment rights.