The Punjab Cabinet chaired by Chief Minister Bhagwant Singh Mann on 30 May 2026 cleared a landmark employment reform package paving the way for the regularisation of more than 65,000 outsourced and contractual employees across government departments and abolishing the long-standing contractor based hiring system. The Cabinet approved the repeal of the Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees Welfare Act 2016 and cleared two new bills, the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill 2026 and the Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill 2026. Under the new framework, outsourced Group C and Group D employees who have completed five years of continuous service will move into direct government contractual employment, while workers in hazardous categories such as firefighters, sewer workers and electricity linemen become eligible after three years. After completing ten years of contractual service, employees will be considered for absorption against regular sanctioned posts. Salaries will be credited directly to bank accounts ending dependence on private contractors. The Cabinet also reconstituted a ministerial panel to address pending dearness allowance and pension dues and approved the establishment of seven exclusive special courts for the speedy trial of corruption cases. Aam Aadmi Party national convenor Arvind Kejriwal hailed the decision as a landmark welfare reform.
Punjab Cabinet Chaired by Chief Minister Bhagwant Singh Mann Approves Regularisation of More Than 65000 Outsourced and Contractual Employees on 30 May 2026 Abolishes the Contractor System by Repealing the Punjab Adhoc Contractual Daily Wage Temporary Work Charged and Outsourced Employees Welfare Act 2016 and Clears the Punjab State Outsourced Personnel Transition to Contractual Engagement Bill 2026 and Punjab Contractual Personnel Absorption Against Sanctioned Vacancies Bill 2026
Punjab Cabinet on 30 May 2026 approved regularisation of over 65,000 outsourced and contractual employees, abolishing the contractor system by repealing the 2016 Welfare Act and clearing two new bills providing direct government employment, 3-year eligibility for hazardous workers and 10-year path to absorption against sanctioned posts.
Key facts
- Punjab Cabinet on 30 May 2026 cleared regularisation of more than 65000 outsourced and contractual employees
- The Punjab Adhoc Contractual Daily Wage Temporary Work Charged and Outsourced Employees Welfare Act 2016 was repealed
- Two new bills approved: Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill 2026 and Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill 2026
- Eligibility timelines: 5 years for Group C and D outsourced employees, 3 years for hazardous categories such as firefighters sewer workers and linemen, 10 years contractual service for absorption against sanctioned posts
- Cabinet also approved seven exclusive special courts for speedy trial of corruption cases and reconstituted ministerial panel for pending DA and pension dues
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Consider the following statements about the Punjab Cabinet decision of 30 May 2026:\n1. The Cabinet approved the regularisation of more than 65,000 outsourced and contractual employees.\n2. Outsourced Group C and Group D employees will be eligible for direct government contractual employment after one year of service.\n3. The Cabinet cleared the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill 2026.\nWhich of the statements given above are correct?
Statements 1 and 3 are correct. The Punjab Cabinet on 30 May 2026 approved the regularisation of more than 65,000 outsourced and contractual employees and cleared the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill 2026. Statement 2 is wrong: Group C and Group D outsourced employees become eligible only after 5 years of continuous service (3 years for hazardous categories).
Source: Punjab Government / India TV
Frequently asked questions
How many employees will benefit from the Punjab Cabinet decision of 30 May 2026?
More than 65,000 outsourced and contractual employees of the Punjab Government will benefit, with the contractor based hiring system being abolished.
Which 2016 Act was repealed by the Punjab Cabinet on 30 May 2026?
The Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees Welfare Act 2016 was repealed.
What is the eligibility timeline for outsourced employees to move into contractual engagement under the new framework?
Group C and D outsourced employees become eligible after 5 years of continuous service, while hazardous category workers like firefighters, sewer workers and electricity linemen become eligible after 3 years.
After how many years of contractual service will employees be considered for absorption against sanctioned posts?
Employees will be considered for absorption against regular sanctioned posts after completing 10 years of contractual service under the new Punjab framework.
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