However, the frontline health, medical education, police, food and agriculture departments would be exempted.
The reduction will remain in force till the Department of Finance resubmits its proposal for review to Chief Minister Amarinder Singh.
The decision was taken at a virtual meeting of the sub-committee on finance, chaired by Amarinder Singh, who stressed on the need for an exit strategy, pointing out that the state could not be kept under lockdown indefinitely.
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The report of the 20-member expert committee working on the strategy is expected this week, an official spokesperson told IANS.
Amid concerns expressed by Finance Minister Manpreet Badal over the critical financial situation in the state in the light of all revenue receipts drying up, the meeting decided that tough decisions are needed to be taken, as an interim measure, to help the state tide over these difficult times.
The meeting also decided that the norms and expenditure on the security of people not holding public office any longer or have never held public office would be reviewed by May 15 to decide on possible cuts on this count.
Earlier, the security of several protected people in the state, including the Chief Minister, was cut down to divert police personnel for the much-needed curfew enforcement and COVID-19 relief duties.
The meeting gave its formal approval to the Chief Minister's earlier announcement that dependents or legal heirs of an employee of the state government who contracts the COVID-19 infection on the line of duty would be paid an ex-gratia of Rs 50 lakh.
Meanwhile, the Chief Minister asked the Health Department to prepare a comprehensive budget for COVID-19 related expenditures.