Punjab government announces 8% DA hike for employees, pensioners from October 1

The Punjab government has announced an eight percentage point increase in dearness allowance (DA) for around eight lakh employees and pensioners, with the revised benefit taking effect from October 1. The hike will raise the DA rate to 50% and will be paid in two instalments of four percentage points each.

The decision comes ahead of the festive season and follows prolonged protests by government employees and pensioners over pending allowance payments and other service-related demands.

Chief Minister Bhagwant Mann announced the decision after a meeting with representatives of employee and pensioner organisations on September 18. Ministers Aman Arora and Baljeet Kaur, Chief Secretary KAP Sinha and Secretary General Administration KK Yadav were also present at the meeting.

DA hike to be paid in two instalments

According to Gurnam Singh Virk, president of the Punjab State Ministerial Services Union, the enhanced DA will be rolled out from October 1. He also said the government had assured employee representatives that their other outstanding issues would be discussed.

Mann said the decision would provide additional financial support to government employees, pensioners and their families during the festive season.

“The state government has an open mind towards the genuine demands of employees and pensioners,” Mann said, adding that the issues would be examined in accordance with applicable rules, financial implications and the legal position.

The chief minister described the September 18 meeting as “very positive” and said the government recognised the responsibilities and pressures faced by employees in their personal and professional lives.

₹14,191 crore arrears dispute continues

The DA hike comes against the backdrop of a separate dispute over accumulated dearness allowance and dearness relief (DR) arrears.

Employees have been seeking compliance with a Punjab and Haryana High Court direction requiring the state to clear outstanding dues within a fortnight. The state government has challenged the order in the Supreme Court, arguing that paying around ₹14,191 crore within such a short period is not financially possible.

The latest announcement concerns the increase in the DA rate and does not resolve the separate dispute over the timeline for clearing accumulated arrears.

The issue had intensified on August 27, when more than three lakh government employees reportedly went on statewide mass casual leave to press for their demands, including the release of pending 18% DA.

More employee issues to be discussed

Further discussions between the government and employee representatives are scheduled for the first week of October.

The agenda is expected to include demands related to the old pension scheme, salaries during probation, and issues concerning ASHA and mid-day meal workers.

Mann said the government would consider employee demands alongside their financial and legal implications. He also linked employee welfare with the quality of public services, saying a satisfied workforce could contribute to better functioning of the administration.

The government is expected to continue discussions with employee and pensioner representatives on the remaining issues.

(WIth PTI inputs)