Overview
- The Punjab Cabinet approved the repeal of the 2016 welfare law on Saturday, May 30, 2026, and cleared two bills and ordinances to move 65,048 outsourced Group C and D workers onto the state payroll.
- Under the transition bill, workers with five years of continuous outsourced service will join direct government contractual employment, while those in hazardous roles become eligible after three years and only after 10 years of contractual service will workers be considered for absorption into sanctioned posts.
- The government ordered phased notifications by the personnel and finance departments to start within about 45 days and said wages will be paid directly into employees’ bank accounts with biometric attendance and statutory benefits such as maternity leave and casual leave.
- The cabinet reconstituted a ministerial sub‑committee to review pending pay, pension and dearness allowance arrears and approved seven special courts plus judicial posts to fast‑track corruption cases linked to public employment.
- The move follows sustained union strikes and repeated High Court criticism of long‑term outsourcing and will affect sectors from power and local government to education and health, with more than 26,000 workers named as the first tranche of beneficiaries while fiscal and administrative challenges remain to be managed.