Fiscal stress sees Himachal stall part of salaries

Mounting financial stress has forced the Himachal Pradesh Government to defer up to 30 percent of salaries of senior officials for six months, a rare austerity measure aimed at stabilising the State’s strained finances. The temporary deferment will take effect from April salaries, payable in May 2026, under powers exercised through a formal notification issued under the proviso to Article 309 of the Constitution.

Under the order, top functionaries — including the Chief Secretary, Additional Chief Secretaries, Principal Secretaries, Director General of Police (DGP), and senior forest officials - will face a 30 percent deferment of their monthly salaries. A second tier of officers, including Secretaries, Heads of Departments, Inspectors General of Police, and forest officers up to the Divisional Forest Officer level, will see 20 percent of their salaries deferred.

 Finance Secretary Ashish Singhmar clarified that the deferred portion will be fully accounted for in future financial calculations, including pension and leave encashment benefits. Pay slips will clearly display both payable and deferred components to maintain transparency. Statutory deductions such as income tax and National Pension System (NPS) contributions will continue to be calculated on gross salary to avoid accounting complications.

Special provisions have also been made for employees servicing loans, with deferment to be calculated after deduction of loan instalments, subject to written undertakings. The Government has further directed State-funded boards, public sector undertakings, universities, and autonomous bodies to adopt similar measures, signalling a wider fiscal tightening exercise across Himachal Pradesh’s administrative framework.

“The Governor of Himachal Pradesh ... in exercise of the powers conferred under proviso to Article 309 of the Constitution of India, is pleased to order temporary deferment of a portion of the monthly salary of certain categories of Government employees for a period of six months, effective from the salary of April to be paid in May, 2026,” the notification read. “The payable and deferred components of salary shall clearly be reflected in the e-salary system and pay slips to ensure transparency,” it added.