The decision of Punjab government to reduction retirement age of government employees from 60 years to 58 years will put an additional burden of Rs 4,500 crore on the state exchequer.
The cash-strapped Punjab government is in quandary to take a decision about reduction retirement age and is in a cost cutting mode these days.Punjab Chief Minister had already hinted to scrap the policy to give two-year extension for government employees after they are 58 years of age.
Highly placed sources disclosed that the proposal would bear fruit in the long run, sources opined that the state will save an annual revenue of Rs 2,400 crore two years onwards after implementing the decision. It will be a win-win situation for the Amarinder Singh government after two or three years of the implementation of the scheme, a senior official feels.
The government is yet not clear on the proposal, a senior officer disclosed, adding that the issue could be discussed in the cabinet meeting to be held on August 4.The issue has become a talk of the town and there is commotion in every government office across the state.
It is learnt that the government is not clear on the issue owing to the financial burden, likely to be added as pensions, gratuities and other dues of the retiring employees in addition to the salaries to be paid to the new recruits.
Senior officers are of the view that two to three employees could be recruited at the salary, government is paying to an employee given two years extension.“If the policy is scraped, it is going to benefit youths who otherwise are taking to the crime or drugs,” he said.
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