Panjab Withdraws Unified Building Rules, Hikes Labor Wages & GST Surges

May

2026

Amid mounting legal and environmental concerns, the Panjab government withdrew the Punjab Unified Building Rules, 2025, on 27 Apr restoring the earlier regulatory framework. The policy aimed to allow contentious provisions, such as relaxations for higher vertical expansion, including stilt-plus-four-floor constructions. This marks the second major rollback by the Housing Department after the withdrawal of the Land Pooling Policy. Both initiatives were designed to generate quick revenue for the cash-strapped state government and support its ambitious spending plans. The petitioners, including 93-year-old Harbinder Singh Sekhon and 61-year-old Jasinder Singh Sekhon, argued before the Punjab and Haryana High Court that the rules would lead to 'haphazard raising of buildings' and unchecked densification of residential areas. They also contended that residents were not adequately consulted during the formulation of the policy. Alongside, the Panjab government has proposed a resolution approving a 15% increase in minimum labor wages after 13 years of work, extending the benefit to all registered workers in both government and private sectors. The resolution came on the back of recent labor unrest among workers—mostly women—at Sportking India Limited’s unit in Bathinda. The agitation began on 19 Apr when employees protested outside the factory, alleging low wages and poor increments. The management then sought a week’s time to address the concerns, following which the protest was temporarily withdrawn. However, the meeting between workers, management, and district administration failed to yield a resolution on 26 Apr, tensions resurfaced and employees began protesting again. The Panjab government moved swiftly and fulfilled the demand, lest it lead to larger statewide protests. The fear of the protests spiralling came from massive April protests in Gautam Budh Nagar, Uttar Pradesh which lasted about a week. Labor activists have criticized the wage hike as insufficient amid rising costs, calling for a 30% increase to match Haryana's wages. Meanwhile, Panjab recorded its highest-ever Goods and Sales Tax (GST) collection of USD 314M in April. It was a 66% growth in GST from 2025. Panjab also recorded a significant 23% surge in Value Added Tax collections in April 2026, adding nearly USD 24M to the state exchequer (earlier coverage).