📰 Major Policy Shift: The End of Regularization Act

The **Punjab Government repeals ‘Punjab Regularization of Service Act 2018’**, marking a watershed moment in public sector employment policy. Effective **31 October 2025**, this significant legislative move signals a clear change in how the government manages its workforce and finances. The primary driver? A critical need to reduce the crippling **financial burden on the government exchequer**, primarily by tackling the massive future costs associated with pensions.

This article, written by the expert team at Educational Trending News, will break down the specifics of the Gazette Notification, explain the switch to a **lump sum pay package**, and detail how this change impacts both current and future government employees.

💼 New Recruitment Policy: Lump Sum Pay Package is the Future

The most consequential part of this repeal is the paradigm shift in the compensation structure for **new recruitments**. Moving forward, all new employees will be offered a **lump sum pay package** instead of the traditional **basic pay scale**. This is a strategic financial decision to mitigate long-term liabilities.

💰 Why the Shift from Basic Pay Scale?

The traditional **basic pay scale** system mandates incremental salary increases and, most critically, ties employees to the government’s defined-benefit pension scheme. The move to a **lump sum pay package** fundamentally separates the government from these future pension liabilities, offering a fixed, consolidated pay amount that is fiscally predictable. This directly addresses the goal of reducing the **financial burden on the government exchequer**.

🛡️ Protection for Current Regularized Employees

It is vital for current employees to understand that the repeal is *not* retroactive. The government has clearly stated that the measures already taken under the ‘Punjab Regularization of Service Act 2018’ will remain firmly in place. This ensures job security and preserves the benefits for those who were regularized prior to the repeal’s **effective date: 31 October 2025**.

📊 Key Comparison: Old Act vs. New Policy

The table below summarizes the critical changes introduced by the government’s latest Gazette Notification, providing a clear comparison of the old and new employment policies.

🔗 Official Authoritative Sources (EEAT)

For complete transparency and to uphold the highest standards of Trustworthiness (T) and Authoritativeness (A), we encourage readers to consult the official documentation:

• 📄 Access the Official Gazette Notification for the full text of the repeal. *(High Authority External Link)*
• 🏛️ Review the Punjab Finance Department’s latest fiscal reports to understand the projected **financial burden on the government exchequer**. *(High Authority External Link with Keyword-Rich Anchor)*
• 📜 Read the original details of the Punjab Regularization of Service Act 2018 before its repeal.

❓ Frequently Asked Questions (FAQs)

✅ Conclusion: A New Era of Fiscal Responsibility

The decision by the **Punjab Government to repeal the ‘Punjab Regularization of Service Act 2018’** is a bold, necessary move aimed at securing the state’s financial future. By transitioning new recruitments to a **lump sum pay package**, the government has drawn a clear line in the sand against unsustainable long-term debt. While the terms for employees regularized under the 2018 Act remain protected, this policy change fundamentally alters the landscape of public employment in Punjab, prioritizing the reduction of the **financial burden on the government exchequer** for the sake of long-term fiscal health.