Archive · 5 Sep 2026
Punjab government proposes 60% DA hike for 85,000 employees
Punjab wants to increase a special allowance for about 85,000 government workers.
Their Dearness Allowance, or DA, would rise from 42% to 60%.
These workers joined after July 17, 2020, and use a Central government pay system.
Older employees generally use Punjab’s pay scales, which have higher basic pay.
The government says the change would reduce the unfair difference between the two groups.
A Cabinet Sub-Committee recommended the increase, but Chief Minister Bhagwant Mann must approve it.
The proposal could cost the state about Rs 900 crore each year.
Many employee unions say their larger concerns about unpaid DA and arrears remain unresolved.
They have also threatened mass casual leave after a statewide strike and a dispute over disciplinary notices.
Punjab plans to raise Dearness Allowance from 42% to 60% for about 85,000 employees recruited after July 17, 2020.
The affected employees follow the Central government’s 7th Pay Commission pay structure but currently receive Punjab’s 42% DA rate.
The increase was recommended by a three-member Cabinet Sub-Committee and requires approval from Chief Minister Bhagwant Mann.
The proposal is expected to add about Rs 900 crore annually and may appear in September salaries.
Employee unions say the move does not resolve their wider demands for pending DA instalments, arrears and withdrawal of disciplinary notices.
- Who
- The Punjab government, Cabinet Minister Aman Arora, Chief Minister Bhagwant Mann, and Punjab government employees and unions.
- What
- A proposed increase in Dearness Allowance from 42% to 60% for approximately 85,000 employees recruited after July 17, 2020.
- When
- The proposal was announced on September 4, after a statewide strike on August 27; unions have threatened mass casual leave from September 8.
- Where
- Punjab; the announcement was made in Chandigarh.
- Why
- The government says the increase addresses a disparity affecting employees placed on Central pay scales while receiving Punjab’s lower DA rate.
Government position
Employee-union position
Purpose of the increase
Government position
The government says post-July 2020 recruits were disadvantaged because they received Central-pattern basic pay but only 42% DA under Punjab’s pattern. It says raising DA to 60% addresses this disparity.
Employee-union position
Employee organisations welcomed the higher DA for the 85,000 workers but said the proposal does not resolve the broader dispute over pending DA instalments and arrears.
Scope of the reform
Government position
The proposal is limited to employees recruited after July 17, 2020, because employees recruited earlier receive Punjab’s higher basic pay scales.
Employee-union position
Joint Employees Front convener Sukhchain Singh Khaira called the move a “divide-and-rule” policy and said unions are seeking withdrawal of the notification that shifted new recruits to the Central pay structure.
Strike and disciplinary action
Government position
The government has appealed to employee unions to pursue dialogue and has issued a notice concerning employees who were absent without authorisation during the August 27 strike.
Employee-union position
Unions say the disciplinary notice should be withdrawn and have threatened mass casual leave from September 8 if the government does not withdraw it.
- Beneficiaries
- About 85,000 employees recruited after July 17, 2020, including teachers, constables, clerks, nurses, health workers, medical officers, patwaris and junior engineers.
- Current DA
- 42%.
- Proposed DA
- 60%, an increase of 18 percentage points.
- Pay structure
- The affected employees’ basic pay is based on the Central government’s 7th Pay Commission matrix, while their DA is currently based on Punjab’s pay pattern.
- Approval status
- A three-member Cabinet Sub-Committee recommended the increase; the recommendation will be sent to Chief Minister Bhagwant Mann.
- Estimated cost
- The enhanced DA is expected to create an additional annual financial liability of about Rs 900 crore.
- Wider dispute
- More than three lakh employees are seeking pending DA instalments and arrears, including 18% DA they say remains unpaid.
