Relief for 65,000 Employees: Punjab Government to Abolish Contract System

June 26, 2026

Significant, welcome news has emerged for government employees in Punjab. In a cabinet meeting chaired by Chief Minister Bhagwant Singh Mann, the Punjab government took a historic decision to abolish the contract and outsourcing recruitment systems that have been in place in government departments for years. Two crucial bills have been approved to this end, aiming to eliminate the system of temporary appointments and provide employees with the security of permanent employment. This move has raised hopes for the regularization of over 65,000 employees currently working on a contract or outsourced basis across the state. The Punjab government’s decision will not only ensure job stability for employees but also strengthen transparency and accountability in government services.

Speaking to the media after the meeting, Chief Minister Bhagwant Singh Mann stated that two bills the Punjab State Outsourced Personnel Bill, 2026, and the Punjab State Contractual Personnel Bill, 2026 would be introduced in the State Assembly. “The Punjab Cabinet has taken a historic decision today to abolish the contract system in Punjab,” the Chief Minister said. He added that this move would benefit 65,048 outsourced employees working across 51 departments.

Chief Minister Bhagwant Singh Mann noted that during public interactions, the Punjab government had frequently heard complaints regarding the exploitation of contract and outsourced employees. He stated that the new system would ensure they receive all benefits on par with regular government employees. An ordinance regarding this matter will be sent to the Punjab Governor for approval, after which the bills will be tabled in the Punjab Assembly.

Commenting on this decision by the Punjab government, Arvind Kejriwal wrote on X: “The Punjab government has decided to regularize 65,000 contractual and outsourced employees, thereby abolishing the contract labor system. This is the first time such a decision has been taken in the country. This is not merely a decision but the beginning of a new life for all these families, where they will receive their full rights and dignity.” I congratulate all the employees on this. I also congratulate Chief Minister Bhagwant Mann for this historic decision.

Meanwhile, Manish Sisodia, the Aam Aadmi Party’s Punjab in-charge, welcomed the Punjab government’s decision, stating that the move to regularize 65,000 contractual and outsourced employees has brought new hope to the lives of lakhs of people. Many congratulations to all the employees. Congratulations also to Chief Minister Bhagwant Mann for this historic decision and for setting a precedent in the country.