The Cabinet has approved the annual deduction of government employees’ salaries for health insurance.

The Punjab government, having decided to roll out an annual premium deduction for its employees as part of the health insurance program, officially approved the measure following a decision made in October. After receiving confirmation from the health department, the provincial cabinet has granted its endorsement to the salary deduction initiative.

Commencing on January 1, 2024, a sum of Rs4,350 will be deducted annually from the salary of each government employee, serving as their contribution to the health insurance program. This deduction applies universally, extending to cases where both spouses are government employees. In instances where couples are both government employees, the deduction will be applied to the salary of one spouse exclusively. Finance Secretary Mujahid Sherdil confirmed the approval of the decision to deduct a premium from salaries, emphasizing that the process will kick off on January 1, 2024.

This marked decision signifies a substantial stride towards extending healthcare coverage to government employees and their families. The health insurance program is poised to provide extensive medical benefits, mitigating the financial strain associated with healthcare expenses.

While the introduction of the program has garnered widespread approval, concerns have been voiced regarding the financial feasibility of the premium, especially for lower-income employees. In response, the government has assured the implementation of various measures to ensure the program remains accessible and advantageous for all its employees.

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