Punjab’s government on Friday announced an eight percentage point increase in dearness allowance (DA) for about eight lakh employees and pensioners. The benefit of the hike will be reflected in payments from October 1. The increase takes the DA rate to 50% ahead of the festive season.
The DA increase will be released in two installments of four percentage points each. It follows prolonged protests over pending allowance payments and other service-related demands.
The decision provides additional income to employees and pensioners while the state separately contests a court order requiring it to clear arrears of around Rs 14,191 crore within a fortnight. Punjab has argued before the Supreme Court that paying that amount within such a short period is impossible.
Chief Minister Bhagwant Mann announced the DA hike decision after a September 18 meeting with representatives of employee and pensioner organisations. Ministers Aman Arora and Baljeet Kaur, Chief Secretary KAP Sinha and Secretary General Administration KK Yadav attended the talks.
DA payments from October 1
Gurnam Singh Virk, president of the Punjab State Ministerial Services Union, said the enhanced DA would be rolled out from October 1, PTI report. He added that the government had assured representatives that other outstanding issues would be discussed soon.
“Ahead of the festive season, this decision will provide additional financial support to thousands of government employees and pensioners and their families,” CM Mann said.
The chief minister described the meeting as “very positive” in a post on X. He said the government understood the responsibilities employees shouldered and the pressures they faced in their personal and professional lives.
Rs 14,191 crore arrears dispute
The latest increase comes against the backdrop of a larger dispute over unpaid DA and dearness relief (DR) arrears. Employees had sought compliance with the Punjab and Haryana High Court’s direction to pay all outstanding dues within a fortnight.
The state government challenged the order in the Supreme Court, citing its inability to meet the approximately Rs 14,191 crore payment obligation within the stipulated period, the Indian Express reported.
The latest DA announcement concerns the increase in the allowance rate; the dispute over the deadline for clearing accumulated arrears remains a separate matter.
The confrontation intensified on August 27, when more than three lakh government employees went on statewide mass casual leave to press their demands, including the release of pending 18% DA, according to the report.
More pay and pension talks in October
Further discussions are scheduled for the first week of October. The agenda includes the old pension scheme, salaries during probation and issues concerning ASHA and mid-day meal workers. The October talks will take up demands with further implications for state finances.
Mann said employee demands would be considered alongside their financial and legal implications.
“The state government has an open mind towards the genuine demands of employees and pensioners and these issues will be examined sympathetically and in accordance with the applicable rules, financial implications and legal position,” he said.
He also linked employee welfare to the quality of public services and said, “A happy employee is a productive employee, and I believe that when an employee works with satisfaction, dignity and peace of mind, the entire system performs better, and the people receive better services…”
An official statement cited by PTI described employees as “the backbone of the state’s administrative machinery”. Mann said the government would continue discussions with their representatives to seek a lasting resolution of the remaining issues.