Archive · 20 Sep 2026
Punjab Announces 8% DA Hike as ₹14,191 Crore Arrears Dispute Continues
Punjab has decided to increase a payment called dearness allowance for government workers and pensioners.
The increase is eight percentage points, bringing the DA rate to 50%.
About eight lakh people are expected to benefit.
The extra money will appear in payments from October 1.
It will be given in two installments of four percentage points each.
Workers had protested over unpaid allowance money and other demands.
A separate disagreement remains over about ₹14,191 crore in older DA and dearness relief arrears.
The state says paying that amount within two weeks is not financially possible and has challenged the matter in the Supreme Court.
More meetings in October will discuss pensions, probation salaries, and other workers’ demands.
Punjab approved an eight-percentage-point DA increase for about eight lakh employees and pensioners, taking the rate to 50%.
The higher DA will be reflected in payments from October 1 and released in two four-percentage-point installments.
Chief Minister Bhagwant Mann announced the decision after a September 18 meeting with employee and pensioner representatives.
The announcement followed protests, including statewide mass casual leave by more than three lakh employees on August 27.
A separate dispute continues over approximately ₹14,191 crore in unpaid DA and dearness relief arrears, while further talks are planned for October.
- Who
- The Punjab government, led by Chief Minister Bhagwant Mann, and Punjab’s government employees, pensioners, and their representative organisations.
- What
- Punjab announced an eight-percentage-point DA increase, while a separate dispute continues over approximately ₹14,191 crore in accumulated DA and dearness relief arrears.
- When
- The decision followed a September 18 meeting; the increased DA will be reflected from October 1, with further discussions scheduled for the first week of October.
- Where
- Punjab.
- Why
- The government said the increase would provide financial support during the festive season, following protests and negotiations over allowance payments and other employment-related demands.
Employees and Pensioners
Punjab Government
Clearing accumulated arrears
Employees and Pensioners
Employees and pensioners sought compliance with the Punjab and Haryana High Court’s direction to clear outstanding dues within a fortnight.
Punjab Government
The Punjab government challenged the direction in the Supreme Court, arguing that paying approximately ₹14,191 crore within such a short period was not financially possible.
Remaining demands
Employees and Pensioners
Employee representatives welcomed the DA increase but continued seeking action on arrears, the old pension scheme, probation salaries, and other issues.
Punjab Government
The government approved the DA-rate increase while saying remaining demands would be assessed under applicable rules and their financial and legal implications.
- DA increase
- Eight percentage points
- New DA rate
- 50%
- Beneficiaries
- About eight lakh employees and pensioners
- Payment start
- Payments reflecting the increase begin October 1
- Installments
- Two installments of four percentage points each
- Disputed arrears
- Approximately ₹14,191 crore in DA and dearness relief arrears
- Next discussions
- First week of October; topics include the old pension scheme, probation salaries, and ASHA and mid-day meal workers’ issues
