States » NorthPosted at: Nov 4 2026 2:54PM

Neeraj Bali
Chandigarh, Nov 4 (UNI) The Punjab government, on Wednesday, announced a three-percentage-point increase in dearness allowance (DA) for nearly 800,000 employees and pensioners, raising it to 53 per cent of basic pay, even as the state faces a legal battle over Rs 22,818 crore in outstanding DA and dearness relief (DR) arrears.
Chief Minister Bhagwant Mann said the increase would provide additional financial benefits worth Rs 363 crore to government employees and pensioners. The revised allowance will be reflected in November salaries and pensions disbursed in December.
The announcement comes just two days after the Punjab government informed the Punjab and Haryana High Court that its outstanding DA and DR liabilities for the period from July 1, 2021, to September 30, 2026, had reached approximately Rs 22,818 crore.
The government also disclosed that its total pending financial obligations towards employees and pensioners, including other claims, stood at about Rs 32,418 crore.
Mann said the Aam Aadmi Party (AAP) government had steadily increased dearness allowance since coming to power in March 2022, when employees were receiving DA at 28 per cent.
"The government has increased dearness allowance from 28 per cent in 2022 to 53 per cent now," Mann said, outlining the successive revisions undertaken during his administration.
The latest increase follows an eight-percentage-point revision announced in September, which raised DA from 42 per cent to 50 per cent after prolonged negotiations with employee organisations.
Under the revised structure, an employee drawing a basic monthly salary of Rs 40,000 will receive an additional Rs 1,200 in DA. Employees earning Rs 60,000 and Rs 100,000 in basic pay will receive increases of Rs 1,800 and Rs 3,000, respectively.
At the new rate of 53 per cent, the monthly DA component for an employee earning Rs 40,000 in basic pay will rise to Rs 21,200 from Rs 20,000.
The decision follows months of confrontation between the state government and employee unions over delayed DA instalments and accumulated arrears.
On August 3, the Punjab and Haryana High Court directed the government to release approximately Rs 14,191 crore in outstanding DA and DR dues within 15 days, with interest at 6 per cent annually on delayed payments.
Employee organisations subsequently launched protests, including a statewide strike on August 27 and a pen-down agitation from September 8 to 11, demanding implementation of the court's directions and clearance of pending dues.
The government responded by enforcing a "no work, no pay" policy against employees who remained absent during the agitation.
Following a meeting between Mann and employee representatives on September 18, the government announced an eight-percentage-point DA increase, prompting unions to suspend their protests.
The finance department issued a notification on September 23, making the revised 50 per cent DA rate effective from September 1.
Meanwhile, the Punjab government challenged the High Court's August order before the Supreme Court, initially filing a special leave petition on September 1 and refiling it on October 1 after addressing procedural deficiencies.
In its November 2 submission to the High Court, the state government acknowledged that the court's directions remained binding in the absence of a stay from the Supreme Court.
While the latest increase will provide additional monthly income to employees and pensioners, the government has not announced a separate timetable for clearing the accumulated arrears.
The outstanding liabilities remain a significant financial challenge for the state administration, with employee organisations continuing to seek payment of dues accumulated over several years.
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