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Himachal Pradesh Govt Suspends Grade Pay Cut Order Amid Staff Protests

Written by: Aayushi ChaubeyUpdated on: 9 Sept 2025, 4:58 pm IST
The state government has paused its order to withdraw higher grade pay for employees after widespread protests, assuring no salary cuts and promising amendments.
Himachal Pradesh Govt Suspends Grade Pay Cut Order Amid Staff Protests
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The Himachal Pradesh government has decided to temporarily hold its order on withdrawing the higher grade pay given to employees. This decision came after many employees expressed strong dissatisfaction and concern over the move.

Grade Pay Cut Order Put on Hold

On September 6, the Finance Department issued a notification to withdraw the higher grade pay. This pay was originally granted by the previous BJP government on January 3, 2022, just before the Assembly elections. 

However, following widespread anger from employee groups, the government has now put this order on hold “on administrative grounds” until further instructions are given. The notification has not been fully withdrawn yet, as that requires Cabinet approval.

Himachal Pradesh Govt To Amend Grade Pay Cut Order

As per news reports, government officials have clarified that there will be no cuts in the salaries of current employees. They acknowledged that the original order contained errors that caused confusion, and reassured employees that the benefits already given will not be taken back. An amendment to correct the earlier order is expected to be made soon.

Will Future Recruits Benefit From Higher Grade Pay?

The government acknowledged the anger among current employees over the withdrawal of a benefit that was given by the previous administration. It promised to review and amend the notification, keeping humanitarian concerns in mind while making policy decisions.

It was also stated that the enhanced grade pay or additional increment will not be extended to new employees recruited in the future. This means that only those employees who already have the benefit will continue to receive it, while new hires will not be eligible.

Background of the Issue

The higher grade pay was introduced by the previous government in early 2022 as part of their election promises. It became effective from January 3, 2022. Employees who had already received this benefit during the past two and a half years were protected from any salary recovery or deductions when their new salaries were fixed.

The recent move to withdraw the higher grade pay caused widespread resentment among employees and criticism from opposition parties, who accused the current government of removing benefits granted by their predecessors.

Read more: Planning to Skip ITR Filing FY25? Here’s What the IT Department Wants You to Know.

Conclusion

By putting the withdrawal order on hold, the government has shown it is responsive to employee concerns. Assurances that no salary cuts will take place have helped ease tensions. However, the decision to stop granting higher grade pay to future recruits reflects a balance between financial management and fairness. The issue remains under review, with further changes expected once the Cabinet gives its approval.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Sep 9, 2025, 11:25 AM IST

Aayushi Chaubey

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