Pay Protection Regular to Contract and Contract to Regular Appointment

Last Updated on March 11, 2023 by Galaxy World

Office of the Accountant General Punjab issued a Notification on 25-06-2021 in connection with Pay Protection Regular to Contract and Contract to Regular Appointment.  You will get the details of all such related cases here where the employees’ services were regularized. The employees got appointments on regular basis, then the same employee got a contract basis and even after that the employees got a Govt service on regular basis again.  You will read in detail such cases as:

Clarification Pay Protection Regular to Contract and Contract to Regular Appointment of Govt Employee


Please refer to your letter No.DAO/BWN/ADMN/HM/Pay-Roll-II-01 dated 12.12.2020 in which a case of Regular Employee appointed on contract and subsequently, her services have been regularized on the same post, has been discussed.

Punjab Govt appointed a lady officer namely Mr. Farida Khanum, Sr. Headmistress, Govt Girls H/S canal Colony, Bahawalnagar as PTC Mistress from 31.01.1982 to 29.12.1987, as EST Teacher from 30.12.1987 to 22.09.1989 and from 23.09.1989 to 20.06.2014 as Secondary School Teacher on regular basis. She got an appointment as Sr. Headmistress (BS-18) w.e.f. 21.06.2014 on a contract basis through PPSC and served as a contract employee up to 21.10.2019 and then the competent authority regularized her services under existing rules and policy.

Punjab Govt allowed Pay Protection to the contract employees vide Govt. of Punjab, S&GAD substituted letter NO.DS (O&M)5-3/2004-Contract (MP) dated 02.08.2007 according to which the pay protection to a regular Govt. employee on contract appointment and contract to contract appointment, the Govt allowed.  That, however, Punjab Govt subsequently omitted vide, S&GAD letter NO.DS(O&M)5-3/2004/Contract(MF) dated 05.04.2013 and that it is still operative.


Presently, the method of pay Fixation in the light of the “Contract Appointment Policy” dated 29.12.2004, in all cases of contract/regular government employees is as under:-


Method of Pay Fixation under Contract Appointment Policy 2004


  • When regular government servants are appointed on a contract basis, the pay shall be allowed as an initial of the pay scale in the light of a letter issued by S&GAD vides No.DS(O&M)5-3/2004/Contract(MF) dated 05.04.2012.
  • Upon contract to contract appointment, the pay shall not be protected in the light of letter ibid dated 05.04.2013.
  • Upon regularization of the services of contract employees, the pay shall be fixed at the initial stage of the respective pay scale and the increments earned during the contract appointment period shall be converted into Personal Allowances (Policy notification No.DS(O&M)5-3 2004 Concement dated 14.10.2009 and No. FD.SR-11/9-263/2011 dated 16.02.2012. The Personal Allowance shall be discontinued upon fresh appointment, promotion, retirement, and posting to the mother cadre post.
  • Upon appointment of a regular government servant to a contract post and consequently reversion to its original post on expiry of the contract period, the pay of a civil servant shall be fixed by adding the annual increments for the period spent on the contract in his original pay scales in the light of Para 3(XVIII)(6) of the contract Appointment Policy, 2004.


Method for Another Senioria Pay Fixation


However, the method for another scenario, in which Regular Employee was appointed on a contract basis and subsequently regularized against the same post, was not available in the “Contract Appointment Policy 2004” is a different/unique nature of the case, this office referred the matter to the Punjab Finance Department and the Government decided by issuing a clarification vide No. FD.SR-II/9-8/2013 dated 19.02.2014 in the case of Dr. Ejaz Mehboob. In the clarification ibid, the Finance department decided that the pay of a regular government employee who was appointed on contract and subsequently regularized on the same post shall be fixed in the same or next pay scale as the case may be with reference to his pay last drawn on regular basis and increments earned during the contract appointment shall be converted into Personal Allowance which will be discontinued upon fresh appointment, promotion, retirement or posting to another cadre post.


In light of the situation above, you are advised that:-


  • The matter of Mr.Farida Khanum, Senior Headmistress may be decided in the light of Finance Department letter No. FD.SR-II/9-8/2013, dated 19.02.2014.
  • All the other cases of the nature discussed in para-3 & 4 above may also be decided accordingly.

(This issue with the approval of Director General DAOs)


Special Thanks:  Mr. Atiq ur-Rehman


Pay Protection Regular to Contract and Contract to Regular Appointment

Pay Protection Regular to Contract and Contract to Regular Appointment of Employee

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