Archive · 8 Aug 2026
Punjab weighs Supreme Court appeal as employees threaten DA strike
The government pays workers extra money called dearness allowance when the cost of living goes up.
In Punjab, a state in India, the government owed workers and retired people a lot of this money and had not paid it for a long time.
A high court told the Punjab government to pay all of it within 15 days.
The court also said that if the government is late, it must pay extra interest.
The government says it wants to pay but is checking whether it can appeal to the Supreme Court.
Workers say the government is making excuses and is not telling the truth about their pay.
Many workers and pensioners gathered in Chandigarh to protest.
They warned that a bigger strike will happen on 27 August if their demands are not met.
They also want older, safer pensions back and a bigger allowance increase.
The money owed is very big — about ₹15,000 crore.
The Punjab and Haryana High Court dismissed appeals by the Punjab government and PSPCL, ordering pending dearness allowance dues cleared within 15 days.
Finance Minister Harpal Singh Cheema said the state is examining legal options, including a possible appeal to the Supreme Court.
The dues are estimated at around ₹15,000 crore, with 6% annual simple interest imposed on amounts not paid by the deadline.
The court barred 'unproductive expenditures' such as large social media and print ad campaigns and ordered a compliance affidavit by 31 August.
Employees and pensioners protested in Chandigarh on 7 August, warning of a wider strike on 27 August if demands are not met.
- Who
- Punjab Finance Minister Harpal Singh Cheema, the Punjab state government and PSPCL, the Punjab and Haryana High Court, and Punjab government employees and pensioners.
- What
- The High Court ordered pending dearness allowance dues cleared within 15 days; the government is weighing a Supreme Court appeal while employees threaten a strike on 27 August.
- When
- August 2026 (High Court order on Monday, protest on 7 August, planned strike on 27 August).
- Where
- Punjab, India; protest held at Sector 39 in Chandigarh.
- Why
- Over an estimated ₹15,000 crore in pending dearness allowance dues owed to employees and pensioners.
Punjab government
Employees and pensioners' unions
Supreme Court appeal vs. immediate payment
Punjab government
The state is committed to paying all constitutionally and legally valid dues but is examining legal options, including a possible appeal to the Supreme Court.
Employees and pensioners' unions
Union leaders accuse the government of distorting facts and demand that long-pending dues and demands be fulfilled, warning of a strike on 27 August.
Pay scale justification for lower DA
Punjab government
Punjab employees already earn 30-70% more than central staff, so the lower 42% DA cannot be combined with the Centre's 60% rate on top of higher pay scales.
Employees and pensioners' unions
Unions say the government is distorting facts on pay scales instead of addressing their demands rather than defending overdue payments.
Responsibility for arrears
Punjab government
The state inherited a ₹14,191 crore pay commission arrears liability from previous governments and has already cleared more than ₹6,000 crore under a liquidation plan.
Employees and pensioners' unions
Employees and pensioners want pension DA and other long-pending demands, including OPS restoration and an 18% DA hike, fulfilled by the current government.
- Court
- Punjab and Haryana High Court
- Payment deadline
- Within 15 days of the order
- Estimated dues
- About ₹15,000 crore
- Default interest
- 6% per annum simple interest
- Compliance report deadline
- 31 August, via affidavit
- Planned strike
- 27 August
- Pay commission arrears liability
- ₹14,191 crore
- DA rates
- 42% of basic pay in Punjab vs 60% for central staff