Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday announced a six-month deferment of a portion of salaries for ministers, MLAs, and top-tier bureaucrats, imposing “cuts” that range from 3 per cent to 50 per cent. Additionally, he also announced a reduction in the MLA Local Area Development Fund from Rs 2.20 crore to Rs 1.10 crore.
Battling a severe financial crunch and having suffered a setback following discontinuation of the revenue deficit grant, Sukhu made the announcements while presenting the Budget for the 2026-27 financial year.
“I want to make it clear that this is only a temporary deferment, and as soon as the financial condition of the state improves, this amount will be returned,” Sukhu later told reporters.
According to the Budget estimates, CM will take home only 50 per cent salary for the next six months. Among others, 30 per cent of the Deputy CM’s and cabinet ministers’ salaries, and 20 per cent of the MLAs’ salaries will be deferred.
The deferment extends to top-tier bureaucracy too. A 30 per cent deferment has been marked for the Chief Secretary, Additional Chief Secretaries, and Principal Secretaries.
Among political appointees, a 20 per cent cut will apply to the salaries of all chairmen, vice-chairmen, and deputy chairmen of commissions, boards and corporations, and the advisors. Twenty per cent of the salary of secretaries and all heads of departments (HoDs) will be temporarily deferred.
A 30 per cent deferment has been marked for the DGP and ADGPs, heads of the forest force (HOFF), and PCCFs and additional PCCFs. Further, 20 per cent of the salary for IGs, DIGs, SSPs, SPs, CCFs, and CFs and other forest officers upto the level DFOs level will be temporarily deferred.
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Group-A and Group-B officers will see a 3 per cent deferment for the next six month period. Sukhu said that Group-C and Group-D employees, who comprises lower level administrative, clerical and support staff, are completely excluded from this measure and will continue to receive their full salaries.
For judicial services, CM said, “While fully respecting the constitutional dignity and independence of the judiciary, the state government hopes that keeping in view the current financial situation, the Honorable High Court will, with its guidance and concurrence, consider the temporary deferment of 20 per cent of the salary at the level of district judges and additional district judges, and 3 per cent of the salary at the level of Group-A and Group-B officers of the Judicial Establishment…The Honorable High Court, at its discretion, may also consider up to 30 per cent voluntary deferment at senior levels”.
He further urged the boards, corporations, PSUs, autonomous bodies, Universities and other major societies that receive Grant-in-Aid or any kind of budgetary support from the state government to also adopt this decision.
The decision to announce the deferment of the salary caught many in the administration off guard. A senior officer with the Finance Department officer said, “Even people familiar with preparing of the Budget document, came to know about the decision only on Thursday”.
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Asked how much money will be saved with his decision, Sukhu said, “This calculation is yet to be made”.
Despite the financial constraint, the Budget document saw CM implementing an increment in honorarium and salaries in several sectors.
The salary of medical officers who are not yet regularised have been increased from Rs 33,600 to Rs 40,000 while that of the staff nurses, lab technicians, pharmacists, operation theatre technicians, previously ranging between Rs 17,800 and Rs 31,900, have been adjusted to a flat Rs 25,000.
A hike of Rs 25 has been announced in wages for the daily wagers while the honorarium for Anganwadi workers, helpers and ASHA workers has been raised by Rs 1,000. Mid-day meal workers, water carriers, Jal Rakshak, multi-purpose and multi-task workers, panchayat chowkidaar and School Management teachers will get an additional Rs 500 per month in their honorarium.
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Sukhu also announced a hike in the limit for MLA Priority Schemes from Rs 200 crore to Rs 225 crore per Assembly constituency.
Meanwhile, a member of the Himachal Pradesh IAS Association requesting anonymity said, “The salary deferring is now just announced. We are waiting for the detailed notification, which is likely to be issued in the coming days. We want to see the proposed ‘cut’ will affect our basic salary or emoluments.”
The member says, “We agree that the state’s financial condition is reeling under the extreme stress but if you see our salary slips, we are getting less than all other cadres’ officers. Mainly, our Dearness Allowances is far below than the IAS, IPS officers of other states. Our counterparts in neighboring states i.e. Punjab, Haryana are getting the Dearness Allowances as per the rules of central government but in Himachal, we are being given on the pattern of state’s services, which are very low than the national average.”
