Punjab Govt Moves To Regularise 65,000 Employees, Approves Bills To End Contract Hiring

Punjab is set to regularise more than 65,000 government employees after the state Cabinet approved two key bills aimed at ending the long-standing practice of contractual and outsourced hiring in government departments. The decision was taken during a Cabinet meeting chaired by Chief Minister Bhagwant Mann on Saturday and is being projected as one of the biggest employment-related reforms undertaken by the government. The move is expected to provide job security and employee benefits to thousands of workers who have been serving in different departments for years under contractual and outsourcing arrangements.

The two proposed laws, the Punjab State Outsourced Personnel Bill, 2026, and the Punjab State Contractual Personnel Bill, 2026, will now be introduced in the state Assembly. If implemented, the legislation will pave the way for a major overhaul of the employment structure across government departments in Punjab.

Cabinet clears major reform aimed at ending contract hiring system

Addressing the media after the meeting, Bhagwant Mann described the decision as historic and said the government was committed to ending the contractual employment system in Punjab.

“The Punjab Cabinet today took a historic decision that we will end the contractual system in Punjab,” Mann said. He noted that the move would directly benefit 65,048 outsourced employees currently working across 51 government departments, as per reports.

The Chief Minister said the issue had repeatedly surfaced during public interactions with employees. According to him, contractual and outsourced workers often complained about exploitation and unequal treatment despite performing duties similar to regular staff members.

Employees to receive benefits similar to regular government staff

According to reports, Mann said the proposed framework would ensure that eligible workers receive benefits on par with regular government employees. The government believes the move will improve job security and address long-standing concerns raised by thousands of workers across Punjab.

He further stated that an ordinance related to the decision would be sent to the Governor for approval. The two bills will then be tabled in the Assembly for legislative clearance, taking the process a step closer to implementation.

The announcement comes just a day after the Aam Aadmi Party registered a strong performance in the Punjab local body elections. Following the results, Mann said the scale of AAP’s victory was such that even the combined tally of the BJP, Shiromani Akali Dal and Congress could not match the party’s performance.

Decision follows AAP’s strong showing in local body elections

Addressing a press conference on Friday, Mann thanked voters and said the people of Punjab had endorsed development-focused politics over divisive agendas.

“I would like to extend my warmest congratulations to the people of Punjab. They have rejected the politics of hatred and have instead given a resounding mandate in favour of development. I wish to congratulate them for rejecting those parties that seek to divide people along religious or caste lines and recognise AAP’s secular administration,” he said, as per reports. 

Polling for 75 Municipal Councils and 20 Nagar Panchayats in Punjab was held on May 26. A total of 7,555 candidates contested the elections. According to election officials, AAP fielded 1,801 candidates, while Congress put up 1,550 candidates. The BJP had 1,316 candidates in the fray, while the Shiromani Akali Dal fielded 1,251 candidates for the civic body polls.

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