Punjab Jobs Regularization of Service Lump-Sum Pay Package 2025 Notification
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The Government of Punjab has officially repealed the Punjab Regularization of Service Act 2018 through a new law named the Punjab Regularization of Service (Repeal) Ordinance 2025, issued on 31st October 2025. According to the notification published in the Punjab Gazette, all new recruitments in Punjab government departments will now be made on a lump sum pay package instead of the basic pay scale system.
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This major step aims to reduce the financial burden on the provincial exchequer, especially the long-term costs related to pension and other post-retirement benefits. However, the government clarified that all measures already taken under the 2018 Regularization Act will remain valid and unaffected.
Punjab Regularization of Service (Repeal) Ordinance 2025 Brief Description
| Topic | Details |
| Notification Title | Punjab Regularization of Service (Repeal) Ordinance 2025 |
| Issued By | Government of Punjab, Services & General Administration Department (S&GAD) |
| Effective Date | 31 October 2025 |
| Old Act Repealed | Punjab Regularization of Service Act 2018 |
| Recruitment Type (New) | Lump Sum Pay Package |
| Purpose | To reduce financial burden and pension liabilities |
| Issued By Authority | Governor of the Punjab |
| Departments Concerned | All Provincial, Attached, and Autonomous Departments |
| Official Source | Punjab Gazette Notification, Law & Parliamentary Affairs Department |
Punjab Regularization Repeal Ordinance 2025 – Key Highlights
The Punjab Regularization of Service Act 2018 had previously allowed contractual employees to be made permanent in government service. With this new Repeal Ordinance 2025, that system has officially ended for all future appointments.
Now, instead of being hired under the Basic Pay Scale (BPS) system, new government employees will be appointed under a Lump Sum Pay Package model. This means they will receive fixed pay without additional long-term benefits like pensions or automatic scale promotions.
The official notification from the Services and General Administration Department (S&GAD) confirms that this policy applies across all Punjab government departments, including education, health, police, and administration sectors.
Officials say the decision is part of broader reforms to make the government system more financially sustainable and efficient.
Purpose of the New Policy – Why Punjab Ended the Regularization Act
According to the official statement from the Punjab Government published in the Punjab Gazette (Extraordinary), the main objective behind this repeal is to reduce the long-term financial pressure on the government.
The earlier regularization system created a heavy pension burden, as thousands of employees became entitled to permanent benefits. Under the new policy, future employees will work on contract-based lump sum packages, which will help the government manage funds better while still offering fair compensation.
The government emphasized that this reform will not affect those who were already regularized under the 2018 Act — their status will remain unchanged.
Conclusion
The Punjab Regularization of Service (Repeal) Ordinance 2025 marks a significant policy shift in the employment structure of the Punjab Government. By moving from the Basic Pay Scale to a Lump Sum Pay Package system, the provincial government aims to control pension liabilities and ensure better financial management.
This decision will directly impact future hiring policies across all departments, while ensuring that previously regularized employees remain protected.
FAQs
Q1. What is the Punjab Regularization of Service (Repeal) Ordinance 2025?
It is a new law that cancels the earlier 2018 Regularization Act for Punjab government employees.
Q2. When was the new Ordinance issued?
It was officially issued on 31st October 2025.
Q3. What changes will this bring to new government jobs?
All new appointments will be on lump sum pay packages instead of regular BPS scales.
Q4. Will this affect employees already regularized under the 2018 Act?
No, those employees will remain regular and unaffected by this repeal.
Q5. Why did the government take this decision?
To reduce the growing financial and pension burden on the Punjab government.
