UP Government Approves ₹20,000 Salary for Outsourced Employees, 3-Year Tenure Announced

In a major decision that will directly impact thousands of contractual staff, the Uttar Pradesh cabinet led by Chief Minister Yogi Adityanath has approved a proposal to enhance the monthly salary of outsourced employees to between ₹16,000 and ₹20,000. The move, announced during a key cabinet meeting on September 2, 2025, also brings in reforms to service conditions and extends reservation benefits in such appointments.

Outsourced Employee Management to Be Streamlined

Currently, the services of outsourced employees for government departments and institutions are managed by the Uttar Pradesh Outsourcing Services Corporation. Established under Article 8 of the Companies Act, 2013, this is a non-financial, non-profit public entity.

Finance Minister Suresh Kumar Khanna, briefing the media on cabinet decisions, said that the government has approved significant improvements to the service conditions of outsourced staff. He added that the corporation will now select service providers through the Government e-Marketplace (GeM) portal, ensuring greater transparency and accountability.

Salary and Service Terms

Under the new rules, outsourced employees will be hired for 26 working days a month. They will receive their honorarium between the 1st and 5th of every month, ensuring timely payments. The tenure of these appointments will last for three years.

In case of the unfortunate death of an employee during service, the government will provide ₹15,000 as funeral assistance to the family.

Reservation Benefits Extended

The cabinet has also decided to implement reservation in outsourcing-based appointments. Beneficiary groups include Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), ex-servicemen, dependents of freedom fighters, women, and persons with disabilities.

Khanna emphasized that earlier, salaries were credited to service providers’ accounts, often leading to complaints from employees that they did not receive their full wages. The new system aims to guarantee fair and transparent salary disbursement, along with better working conditions and reservation benefits.

Relief in Stamp Duty for Families

Apart from employee-related decisions, the cabinet also announced a reduction in stamp duty and registration fees on property partition documents. The government has fixed a flat fee of ₹5,000, replacing the earlier system of charging 4% stamp duty and 1% registration fee based on property value.

According to the official statement, the reform will encourage families to formally register property partitions, which will help reduce disputes, ensure amicable settlements, and keep land and revenue records up to date. It is also expected to improve the availability of properties in the market.

Although the government anticipates an initial revenue loss of ₹5.58 crore in stamp duty and ₹80.67 lakh in registration fees, it expects higher registration volumes to compensate for this loss over time.

A Step Toward Inclusive Governance

The dual decisions—enhancing the pay and service terms of outsourced employees while reducing financial burdens on families during property partitions—are being seen as people-centric measures. Analysts note that these reforms will boost employee morale, provide social security, and simplify legal processes for families, while also aligning with the government’s broader vision of efficient and transparent governance.

For outsourced employees, this move is more than just a salary hike; it is recognition of their contribution to the functioning of government institutions. For families across the state, the new stamp duty rules are expected to remove a significant financial hurdle, paving the way for smoother inheritance and property settlement processes.