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Kaushal Rozgar Nigam in Chandigarh could save Rs 183 crore annually, end contract system exploitation
Ramesh Goyat
Chandigarh, April 6, 2025: If the Chandigarh Administration sets up a Kaushal Rozgar Nigam Chandigarh (KRNC) on the lines of Haryana’s model, it could not only improve transparency in government departments but also result in annual savings of ₹183 crore.
Currently, around 18,000 employees work under the Chandigarh Municipal Corporation (MCC) and the administration, a large number of whom are on contract.
These workers are recruited and managed by private contractors, who charge a commission of 3.85%, amounting to ₹183 crore annually – a significant cost burden for the administration.
The Cost Breakdown:
- Total employees (MCC + Administration): 18,000
- Average monthly salary per employee: ₹22,000
- Total monthly salary expenditure: ₹396 crore
- Monthly contractor commission (3.85%): ₹15.25 crore
- Annual contractor commission: ₹183 crore
Beyond the financial impact, this contractor-based system often leads to delays in salary payments, unfair deductions, and lack of employee benefits, affecting job security and morale.
Proposed KRNC Model:
- Direct Government Recruitment:
- Like Haryana’s Kaushal Rozgar Nigam, Chandigarh can establish KRNC – an independent government body to manage recruitment and salary disbursement for contractual and outsourced employees.
- Salary Paid Directly to Workers:
- Under KRNC, employees would receive salaries directly into their bank accounts, inclusive of PF, ESI, and other welfare benefits, ensuring transparency and eliminating contractor interference.
- Improved Financial and Job Security:
- Employees would benefit from timely payments and future safeguards like gratuity and pension, while the administration would treat this model as a sustainable investment.
- Better Quality and Fair Hiring:
- By streamlining the hiring process and focusing on skill-based recruitment, KRNC can reduce mismanagement, lower costs, and ensure better employee quality.
- Transparency and Accountability:
- With contractors out of the equation, issues like corruption, wage theft, and fund mismanagement can be effectively addressed.