Shimla: In what is being seen as a tough but calibrated fiscal correction, Chief Minister Sukhvinder Singh Sukhu has unveiled a comprehensive salary deferment and financial restructuring plan to pull Himachal Pradesh out of its deepening financial stress.
Calling it a temporary but necessary step, Sukhu said the decision aims to ensure timely payment of salaries, pensions and continuation of development works, even as the state battles a heavy debt burden and pending liabilities.
Salary deferment: “shared burden” formula
The government has opted for a graded deferment mechanism, placing a higher burden on those at the top:
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Chief Minister & Council of Ministers: 50% salary deferment for 6 months
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MLAs: 30% deferment
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Chairpersons, Vice-Chairpersons, political appointees: 20% deferment
Bureaucracy and police officers
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Chief Secretary, Additional Chief Secretaries, Principal Secretaries: up to 30% deferment
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Heads of Departments: around 20% deferment
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Senior police officers (ADGP, IG, DIG, SP level): 20–30% deferment
🏢 Other कर्मचारी वर्ग
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Group A & Group B officers: 3% salary deferment
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Group C & Group D employees: fully exempted, will continue to receive full salaries
The CM clarified that this is not a salary cut but a deferment, and the withheld amount will be paid once the financial situation improves.
Appeal to judiciary & institutions
Respecting the independence of the judiciary, the government has requested (not mandated) that:
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District judiciary may consider 20% voluntary deferment
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Higher judiciary may also consider similar steps in view of the crisis
Boards, corporations, universities and autonomous bodies receiving government grants have also been asked to adopt similar measures.
Why this step?
The state is grappling with:
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Mounting liabilities and debt burden
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Pending payments of around ₹13,000 crore inherited over time
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Pressure due to closure of key revenue streams and rising expenditure
Sukhu squarely blamed “mismanagement of previous governments” for the situation but said his government is focused on solutions rather than blame.
🧾 Big relief for employees & pensioners
Even while deferring top-level salaries, the CM announced major relief measures:
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All pending pension arrears (post-2016) to be cleared in FY 2025–26
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Gratuity, leave encashment arrears (2016–2021 retirees) to be fully paid
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Around ₹3,000 crore to be spent on clearing these dues
Other कर्मचारी benefits
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100% salary during study leave (education/medical)
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Regularisation of eligible daily wagers based on service criteria
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Daily wages increased to ₹750 per day
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Minimum monthly pay for contractual workers raised to ₹13,700
Boost to MLA funds & development
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MLA priority scheme limit increased to ₹25 crore per constituency
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MLA discretionary grant enhanced to ₹1 crore annually
Honorarium hike for grassroots workers
The government also announced ₹500–₹1,000 monthly increases for several categories:
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Anganwadi workers & helpers
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ASHA workers
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Chowkidars, Jal Rakshak, Multipurpose workers
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Para teachers and other field staff
“Not politics, but survival”
Sukhu made an emotional appeal, saying the decisions are aimed at saving the state’s finances, not winning elections.
He even disclosed that he personally reviewed the situation late nights before finalising the measures, urging people to give the government six months to stabilise the economy.
Fiscal snapshot
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Revenue receipts (FY 2025–26 est.): ~₹40,938 crore
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Revenue deficit remains a concern
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State aims to stabilise finances while maintaining welfare commitments
This is perhaps the first time Himachal has adopted such a wide-ranging deferment model, spreading the burden across political executives, bureaucracy and top officials while shielding lower कर्मचारियों.
The Sukhu government is betting that this shared sacrifice model will buy time, restore fiscal balance and keep the state’s welfare and development engine running.
