Archive · 24 Aug 2026
Why Punjab Finance Minister Harpal Singh Cheema Faces Employee Protests
Many government workers in Punjab are upset about their pay, pensions and job conditions.
They want the Old Pension Scheme brought back for eligible employees.
They also want unpaid dearness allowance, state pay scales and permanent jobs for some workers.
Thousands marched in Sangrur and other employee groups have held protests across the state.
The workers are especially criticizing Finance Minister Harpal Singh Cheema because his department handles many of these issues.
The government says it inherited large unpaid bills from earlier governments.
Cheema says the government has held many meetings and has already resolved some demands.
The government has invited unions to talks, but more protests are planned.
The dispute could matter politically for the Aam Aadmi Party before the next Assembly election.
Thousands of government employees protested in Sangrur over the Old Pension Scheme and other demands.
Unions are seeking pay-scale changes, dearness allowance arrears, job regularisation and higher wages.
Employees say Punjab provides 42% dearness allowance, compared with 60% for Central government workers.
The AAP government has invited unions for talks amid plans for a statewide “Maha bandh” on August 27.
Harpal Singh Cheema cited inherited liabilities and Punjab’s debt, while saying several demands were being addressed.
- Who
- Punjab government employees and unions, Finance Minister Harpal Singh Cheema, and the Aam Aadmi Party government led by Chief Minister Bhagwant Mann.
- What
- Employees are protesting for the Old Pension Scheme, state pay scales, dearness allowance arrears, job regularisation and improved wages.
- When
- Protests have taken place in recent weeks, including on August 7 and August 22; talks were scheduled for August 27, alongside a planned “Maha bandh.”
- Where
- The main reported march began at the Tolewal grain market in Sangrur district and headed toward Satauj, Bhagwant Mann’s village. Other protests took place in Chandigarh and across Punjab.
- Why
- Employees say several financial and employment-related demands remain unresolved; the government cites inherited liabilities and Punjab’s high debt as constraints.
Employee unions
Punjab government and Harpal Singh Cheema
Unresolved employee demands
Employee unions
Unions want the Old Pension Scheme, state rather than Central pay scales, dearness allowance arrears, job regularisation and improved wages. They accuse Cheema of failing to fulfil assurances made while he was in opposition.
Punjab government and Harpal Singh Cheema
Cheema says several legitimate demands have already been resolved, while the state pay-scale issue remains under consideration and dearness allowance payments are being pursued.
Treatment of protesters
Employee unions
Employee leaders say the government used force against protests and that Cheema, who previously joined demonstrations against the Congress government, has not kept his commitments after receiving the Finance portfolio.
Punjab government and Harpal Singh Cheema
Cheema says the administration is engaging with unions rather than avoiding them and points to the many meetings he has held with employee organisations.
Financial constraints
Employee unions
Employees argue that the government should meet its commitments, including paying the claimed outstanding dearness allowance and implementing pension and pay reforms.
Punjab government and Harpal Singh Cheema
The government says it inherited liabilities from previous Congress and Shiromani Akali Dal–Bharatiya Janata Party governments, while Punjab’s debt makes meeting every demand difficult.
- Main figure facing criticism
- Punjab Finance Minister Harpal Singh Cheema
- Old Pension Scheme protest
- Thousands of employees gathered in Sangrur and marched toward Satauj.
- Dearness allowance gap claimed by unions
- Punjab employees receive 42%, compared with 60% for Central government employees, according to employee organisations.
- Estimated employee base
- Around seven lakh government employees, including contractual staff, work across Punjab departments.
- Planned action
- Unions announced an August 27 “Maha bandh” involving shutdowns, road protests and coordination with farmer organisations.
- Punjab debt
- The state’s outstanding debt was reported at around Rs 4.2 lakh crore at the end of FY 2025–26 and was expected to rise further.
- Government’s arrears claim
- Cheema said previous governments left Rs 14,161 crore in dearness allowance arrears and that the AAP government had paid around Rs 5,000–6,000 crore.