Face2News/Chandigarh
Punjab Chief Minister Bhagwant Mann has announced a 3 per cent increase in Dearness Allowance (DA) for state government employees and pensioners, providing relief to nearly 8 lakh beneficiaries. With this increase, the DA rate will rise from 50 per cent to 53 per cent.
Announcing the decision here Chief Minister said the hike would result in a financial benefit of approximately Rs 363 crore to employees and pensioners. The revised DA will be reflected in November salaries and December pension payments.
The increase will directly impact monthly earnings, as DA is calculated on basic pay. For instance, an employee drawing a basic salary of Rs 40,000 will receive an additional Rs 1,200 per month, while those earning Rs 60,000 and Rs 1 lakh will benefit by Rs 1,800 and Rs 3,000, respectively. At the revised rate of 53 per cent, the total DA on these basic salaries will be Rs 21,200, Rs 31,800 and Rs 53,000, respectively.
Taking a swipe at previous governments, Mann said that during nearly five years in office, his government had never claimed that the state treasury was empty. He recalled that when his government assumed office in 2022, employees were receiving 28 per cent DA. Following successive increases, the rate reached 50 per cent after an 8 per cent hike announced in September 2026. The latest 3 per cent increase will take it to 53 per cent.
DA Arrears Dispute Still Pending
The DA issue has remained a major point of contention between employees and the state government. On August 3, 2026, the Punjab and Haryana High Court directed the government to release approximately Rs 14,191 crore in pending DA/DR arrears within 15 days, with 6 per cent annual interest in case of delay.
Following the order, employee organisations intensified protests and staged a statewide strike on August 27, claiming participation by over three lakh employees.
Between September 8 and 11, employees also observed a pen-down strike. On September 18, Mann announced an 8 per cent DA hike following a meeting with employee representatives, after which the unions suspended their agitation. The Finance Department issued a notification on September 23, making the increase effective from September 1, 2026.
Meanwhile, the Punjab Government challenged the High Court’s order in the Supreme Court. On November 2, the government informed the High Court that pending DA/DR liabilities for the period from July 1, 2021, to September 30, 2026, stood at approximately Rs 22,818 crore, while the total liability, including other pending claims, was estimated at Rs 32,418 crore.
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