The Punjab Assembly has passed two bills that could have a direct impact on employment conditions and household expenses in the state. One focuses on bringing outsourced government workers into direct contractual employment, while the other seeks to regulate fee increases by private schools.
The Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, was passed unanimously. It proposes shifting around 26,000 to 28,000 outsourced workers into direct contractual engagement with the state government in its first phase.
Under the proposed framework, eligible Group C and Group D workers would no longer be engaged through private outsourcing agencies. Instead, they would have a direct contractual relationship with the government.
The move would also bring several employment benefits for these workers, including provident fund, gratuity, Employees’ State Insurance, maternity leave and casual leave. The government has also stated that removing intermediaries could increase workers’ take-home earnings, as outsourcing agencies currently deduct commissions estimated at 15 per cent to 22 per cent of their wages.
The second bill, the Punjab Regulation of Fees of Unaided Educational Institutions Amendment Bill, 2026, seeks to put a 5% per cent annual ceiling on fee increases by private schools.
It also expands the definition of school fees to cover all amounts collected from parents. The legislation provides for action against schools that violate the provisions, including refunds of excess amounts and penalties. The government has also proposed forensic audits of private schools to examine their fee structures.
The measure is expected to affect more than 32 lakh students across nearly 7,800 private schools in the state.
From an employment perspective, the outsourced personnel legislation could alter the way government departments engage a large section of their support workforce. Moving workers away from private contractors could also change their access to statutory benefits and improve employment security, subject to the implementation of the new framework.
The two measures together place employment conditions and household costs at the centre of the state’s latest legislative changes, with their eventual impact depending on how the provisions are implemented across departments and institutions.
