Archive · 26 Aug 2026
Punjab employees challenge pay orders amid wider DA dispute
Punjab government employees say two old decisions have made new government jobs less attractive.
The 2015 decision gave new employees reduced pay while they were on probation.
Their probation period was later extended to three years.
The 2020 decision gave people hired after July 17, 2020 different and often lower pay scales.
Unions say newer workers can earn less than colleagues doing the same work.
They also say lower basic pay reduces benefits such as DA and housing allowance.
The employees are demanding that both decisions be cancelled.
They are also asking for unpaid DA and implementation of the Punjab Pay Commission’s recommendations.
The government says it has already paid part of the old arrears and is considering the pay-scale demand.
Unions want Punjab to withdraw 2015 fixed-pay and 2020 pay-scale orders.
The 2015 order introduced reduced fixed remuneration during a three-year probation period.
The 2020 order linked new recruits’ pay scales to Seventh Central Pay Commission scales.
Employees say the orders created lower pay for newer workers doing the same jobs.
The dispute also involves pending DA, pay commission recommendations and differing arrears calculations.
- Who
- Punjab government employees and unions, the AAP government, and Finance Minister Harpal Singh Cheema.
- What
- Employees are seeking withdrawal of two pay-related orders, payment of DA arrears, and implementation of Punjab Pay Commission recommendations.
- When
- The disputed orders were issued on January 15, 2015, and July 17, 2020; unions say 18% DA has been pending since January 2023.
- Where
- Punjab, including its state government departments and entities.
- Why
- Unions say the orders reduced new recruits’ pay and created unequal pay regimes, while DA and pay commission demands remain unresolved.
Employee unions
Punjab government
Withdrawal of pay orders
Employee unions
Unions want both the 2015 and 2020 orders scrapped, arguing that they eroded government employees’ financial security and created unequal pay for similar work.
Punjab government
The AAP government has retained and implemented both orders, according to the unions; the government’s stated position in the article does not commit to withdrawing them.
DA arrears
Employee unions
Employees say the current arrears accumulated from January 2023 and that the government released only one instalment covering July 2022 after taking office.
Punjab government
Finance Minister Harpal Singh Cheema said previous SAD-BJP and Congress governments left Rs 14,161 crore in arrears, while the AAP government has paid around Rs 5,000–6,000 crore and proposed clearing the balance before the Punjab and Haryana High Court.
Punjab pay scales
Employee unions
Unions want Punjab’s traditional pay scales restored and the Punjab Pay Commission’s recommendations implemented.
Punjab government
Cheema said restoration of Punjab’s own pay scales was under consideration.
- 2015 order
- Introduced fixed remuneration for newly recruited employees during probation, initially excluding grade pay and annual increments.
- Probation period
- Initially two years, extended to three years in September 2016.
- 2020 order
- Capped pay scales for appointments on or after July 17, 2020, at corresponding Seventh Central Pay Commission scales.
- Reported teacher pay gap
- A senior secondary teacher recruited before the cut-off was cited as receiving Rs 45,400 basic pay, compared with Rs 35,400 for a post-cut-off recruit.
- DA dispute
- Unions claim 18% DA has been pending since January 2023; the article says Punjab employees receive 42% DA compared with 60% for central employees.
- Government arrears claim
- Harpal Singh Cheema said earlier governments left Rs 14,161 crore in arrears and that the AAP government paid around Rs 5,000–6,000 crore.
- Estimated affected employees
- Unions estimate more than two lakh employees are affected by the two notifications.