Section 155(1) in The Punjab Panchayati Raj Act, 1994
(1)Subject to rules made by the State Government Panchayat Samiti may employ such employees as it may consider necessary for the efficient performance of the duties and functions imposed upon it by this Act or rules or bye-laws made thereunder or any other law for the time being in force and may :-(a)fix for them such pay and leave allowance, subject to the prescribed limit, in proportion to the income of the Panchayat Samiti as it may think fit:Provided that any excess in expenditure over the establishment of the Panchayat Samiti shall require the prior approval of the State Government.(b)establish and maintain a more Provident Fund or Annuity Fund on behalf of such employees and may compel any or every such employees to contribute thereto and may supplement such contribution out of the Panchayat Samiti Fund;(c)grant them pension or subscribe on their behalf for pension or gratuity:Provided that-(i)the conditions of grant of leave allowance, more provident fund, pension, gratuity and annuity shall not be favourable than those prescribed for persons in the service of the State Government;(ii)no leave allowance, provident fund, pension, gratuity or annuity granted to an employee shall exceed the sum which, under any general or special order for the time being in force such employee would be entitled to if his service had been under the State Government.
