Update: 23/4/2009
The Dynamic Career Progression Scheme with the recommended revised pay scales of Asst Engineers of Irrigation/ Electricity and other depts. of Punjab Govt have been defined in the corrections issued by 5th Pay Commission.

Highlights of 5th Pay Commission Report

• Pay Scales, Allowances and Pensions of Punjab Government employees revised. Average increase to be around 27%.
• The Retirement age for all employees to be 60.
• Implementation of the revised pay scales from January 1,2006.
• Recommendations relating to allowances to be implemented from the date of notification by the Government.
• Five distinct running pay bands with longer spans being recommended-one running band each for all categories in groups
  D,C and B and 2 running pay bands for Group ‘A’.

• Each post has a distinct Grade Pay attached to it. Grade pay is linked to its seniority in the hierarchy.
• Total number of Pay Scales to remain 32, spread across five distinct running pay bands.
• Several categories of employees such as Teachers, Nurses, Constabulary to get higher pay scales.
• A person stagnating at the maximum of any pay band for more than one year continuously to be placed in the immediate next
  higher pay band without any change in the grade pay.

• Uniform Annual increment to be three percent of pay for all employees.
• Existing fixed amount of allowances to be doubled and made inflation proof with a provision of 25% automatic increase
  whenever dearness allowance payable on revised pay scales goes up by 50%.

• 5 percentage points increase in House Rent Allowance (HRA) for all areas in Punjab. However, City Compensatory Allowance to be discontinued.
• Rural Area Allowance to continue at 6%.
• TA/DA rates revised upwards.
• Transport Allowance for blind and orthopedically handicapped employees to continue with enhanced limit of Rs. 450/-.
• Employees allowed to encash 10 days of leave at the time of availing LTC with a maximum of 60 days during the entire career.
  60 days leave encashed not to be deducted from accumulated leave of 300 days.

• Education allowance of Rs. 500/- per child per month upto 2 children recommended.
• Fixed Medical Allowance raised to Rs. 500/- per month.
• Mobile allowance varying from Rs. 100 to 500 recommended for all employees.
• Non-Practicing Allowance of 25% of Basic Pay (NPA) to be given to Ayurvedic, Homeopathic and Veternary Doctors besides PCMS
  Doctors and Dentists.

• Officers on deputation as Faculty Members to Training Institutions to get 30% Deputation Allowance.
• Risk allowance to be replaced by risk insurance cover for employees ranging from Rs. 5 lakhs to Rs. 15 lakhs.
  All pensioners to have a fitment benefit on Central Pattern.

• Pension to be paid at 50% of the average emoluments/last pay drawn after 20 years of service without linking it to 33 years of
  qualifying service for grant of full pension.

• A liberal severance package recommended for employees leaving service between 15 to 20 years of service.
• Higher rates of pension for retirees and family pensioners on attaining the age of 80, 85, 90, 95 and 100 years while continuing with the existing old age allowance on attaining 65 and 75 years.