Punjab ends outsourcing system, brings 28,000 workers under govt contract
The Punjab Assembly on Monday unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, paving the way to bring 26,000 to
The Punjab Assembly on Monday unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, paving the way to bring 26,000 to 28,000 outsourced employees under direct contractual engagement with the government. Chief Minister Bhagwant Mann told the House that the Bill will apply to eligible outsourced employees in Group-C and Group-D categories who are engaged in essential public services and meet the prescribed eligibility conditions. He said 26,000 to 28,000 outsourced employees will immediately benefit in the first phase. Read Full Story On the concluding day of the Monsoon Session of the Assembly, Finance Minister Harpal Singh Cheema presented the Bill in the House. During the discussion, Mann described the legislation as a step towards ending contractual exploitation and said eligible outsourced employees working in government departments and government-controlled institutions will be brought directly under contractual engagement by the state government.
Mann said the remuneration paid to these employees will not be less than their existing salary or the legally prescribed minimum wage, whichever is applicable. He said they will receive provident fund and gratuity benefits, be entitled to ESI benefits, get maternity leave and, like regular employees, be entitled to 10 days of casual leave every year. Emphasising the financial benefit for workers, Mann said the 15-22 per cent commission currently charged by outsourcing agencies will no longer be deducted, and the corresponding benefit will go to the employees. Calling it a historic decision in favour of employees, he said, "This is one of the biggest decisions in Punjab's history for the welfare and rights of employees.
From today, the decades-old system of contractual outsourcing in Punjab will come to an end." He added, "The role of private contractors in government employment will be eliminated, establishing a direct relationship between the government and the workers." Highlighting the contribution of outsourced workers, Mann said, "Thousands of contractual outsourced workers in Punjab have dedicated several years of their lives to serving the state." He added, "These workers have also made a significant contribution to Punjab's progress and prosperity and in ensuring that the government's welfare schemes reach those in need. However, the constant uncertainty created by the presence of contractors was adversely affecting their jobs and lives." Mann said the AAP government has now given these workers what they deserved.
The BriefWire