The Punjab Regularization of Service Act 2018 has officially been repealed through a new ordinance titled the Punjab Regularization of Service (Repeal) Ordinance 2025, which took effect on October 31, 2025.
The decision marks a major policy shift in the province’s approach to employee management and financial planning for development projects.
According to the government’s notification, all new departmental recruitments will now be made on a lump-sum pay package instead of the traditional Basic Pay Scale (BPS) system. This decision has been taken to reduce the financial burden on the government exchequer in terms of pension payments.
Officials stated that the move would free up significant fiscal space, allowing more funds to be directed towards infrastructure and public development projects across Punjab.
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However, the notification clarified that all actions taken under the 2018 law will remain valid, ensuring that previously regularized employees retain their rights and benefits.
The ordinance has been signed and approved by the Governor of Punjab and its official gazette notification has been issued.
