Employees Confront Sukhu Government Over Rollback of Higher-Grade Pay.
Shimla, September 8, 2025: In a dramatic face-off at the Himachal heretoday, thousands of state employees rallied today in strong opposition to a controversial government notification that rescinds higher-grade pay benefits.
The workforce, represented by the Secretariat Services Employees Association, demanded immediate government intervention to roll back the order issued by Finance Secretary Devesh Kumar last week.
They warned that the rollback—potentially trimming monthly salaries by ₹10,000 to ₹15,000—will severely disrupt household budgets and commitments.
Sanjeev Sharma, president of the employees association, warned that unless the notification is withdrawn today, employees will be forced to take to the streets—with the state government bearing full responsibility for the fallout (uniindia.com).
The contentious notification effectively reverses the September 6, 2022, order that had allowed 89 categories of employees to be placed in higher pay scales upon completion of two years of regular service.
Although officials have clarified that there will be no recovery of overpayments already disbursed during the period, the financial setback remains a major concern.
Strategic Protest Meets Financial Crunch
The protest illustrates the institutional clout of the government employees’ lobby — wielding considerable influence over policymakers.
The Sukhu administration, already grappling with a grim fiscal situation, now finds itself pressed on two fronts: mounting employee unrest and an increasingly fragile state economy.
Just weeks earlier, the state assembly erupted in protest over delayed disbursal of 11 percent dearness allowance (DA) arrears.
CM Sukhu blamed the delay on shrinking central grants, liabilities inherited from the previous regime, and lost borrowing capacity due to the implementation of the old pension scheme.
Officials already concede that financial resources are constrained. In this context, withdrawing the higher-grade pay notification could severely strain the exchequer even further, calling into question the government’s capacity to meet payroll targets while balancing its obligations under the pay revision rules.
1. Self-Inflicted Fiscal Dilemma
By rescinding a long-standing benefit, the government risks triggering a broader wave of disaffection—not just among affected employees but across the entire state workforce.
The rollback could set a precedent perceived as regressive, especially in a state facing rising living costs and limited public sector growth.
Employee Lobby – A Force to Reckon With
The show of strength in today’s protest underlines the political heft of the employee unions.
Their capacity to mobilize thousands and gate-crash the government secretariat speaks volumes about their organizational heft and bargaining power.
Government Caught Between a Rock and a Hard Place
With state finances already stretched—debt crossing ₹1 lakh crore and recovery prospects declining—the government faces a fraught path.
One option is partial restoration accompanied by phased implementation; another is early negotiations for smart fiscal offsets. Yet political optics suggest that any concession is likely to embolden the unions.
Possible Fallout
If the administration fails to deliver a satisfactory resolution soon, the simmering discontent could escalate into statewide strikes, service disruptions, and political fallout—ill-timed for a Congress government trying to meet economic constraints while maintaining employee trust.
In withdrawing the higher-grade pay notification, the Sukhu government has unwittingly ignited a full-blown protest in its bureaucratic backyard.
With employees facing a sharp drop in take-home pay and the union’s leadership unyielding, the government must urgently engage with the demand—balanced against an ailing fiscal position—to avert an even deeper crisis.
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