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Cabinet approves annual health insurance deductions for government employees

by Celia

The Punjab government has decided to introduce an annual deduction from the salaries of its employees under the health insurance scheme.

The decision was taken in October, after which the health department wrote to the finance department. The provincial cabinet has now approved the payroll deduction.

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From 1 January 2024, Rs 4,350 will be deducted annually from the salary of each government employee as a contribution towards the health insurance scheme. This deduction will apply to all employees, including those where both spouses are government employees.

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In cases where couples work as government employees, the deduction is applied to the salary of only one spouse.

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The decision to deduct a bonus from salaries has been approved, said Finance Secretary Mujahid Sherdil. He confirmed that the deductions will start from 1 January 2024.

The move is a significant step towards providing health insurance to government employees and their families. The health insurance scheme is expected to provide comprehensive medical benefits and reduce the financial burden associated with healthcare costs.

While the introduction of the scheme has been welcomed by many, some concerns have been raised about the affordability of the premium for low-income employees. However, the government has assured that various measures will be taken to ensure that the programme is accessible and beneficial to all employees.

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