Chandigarh: The Punjab government has proposed raising the Dearness Allowance (DA) of around 85,000 government employees from 42% to 60%, bringing it in line with the Central pay pattern.
The announcement was made by Cabinet Minister Aman Arora on September 4 following a recommendation by a three-member Cabinet Sub-Committee comprising Arora, Finance Minister Harpal Singh Cheema and Social Security Minister Baljit Kaur. The recommendation will now be sent to Chief Minister Bhagwant Mann for final approval.
Key Points
- 85,000 employees covered: The proposal applies to employees recruited after July 17, 2020.
- DA to rise from 42% to 60%: The proposed 18-percentage-point increase would align their DA with the Central pay pattern.
- Final approval pending: The Cabinet Sub-Committee’s recommendation will be placed before CM Bhagwant Mann.
- Different pay structure: These employees are on basic pay based on the Central government’s 7th Pay Commission matrix but have been receiving DA at Punjab’s 42% rate.
- Mass casual leave threat: Employee organisations have announced a fresh agitation, including mass casual leave on September 8, if disciplinary notices issued after the August 27 strike are not withdrawn.
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Who Will Benefit?
The proposed revision covers government employees recruited after July 17, 2020, whose basic pay follows the Central government’s 7th Pay Commission structure while their DA has remained linked to Punjab’s rate.
According to Arora, around 71,000 employees recruited under the current AAP government and another 14,000 recruited during the previous Congress government would benefit from the proposal.
The minister said the move is intended to address the pay disparity faced by post-July 2020 recruits. Employees appointed before that date continue to be governed by the Punjab Pay Commission’s pay structure and are not covered by this particular proposal.
DA Decision Comes Amid Employee Agitation
The announcement comes amid an ongoing dispute between the Punjab government and employee organisations over DA arrears and other service-related demands.
More than three lakh government employees participated in a statewide strike on August 27, according to reports. Employee organisations are now threatening mass casual leave on September 8 if the government does not withdraw notices seeking action against employees who were absent during the August 27 agitation. They have given the government time until September 7 to withdraw the notices.
The wider dispute includes demands for the release of pending DA instalments and arrears. The proposed 60% DA, therefore, addresses the specific pay structure of post-2020 recruits rather than settling all outstanding demands of Punjab government employees.
Government Says Move Addresses Pay Anomaly
Arora said employees recruited after July 2020 were placed on the Central pay structure while continuing to receive DA at Punjab’s lower rate. He argued that the earlier justification of higher Punjab basic pay does not apply to this category because their entry-level pay itself is based on the Central structure.
The proposed hike is expected to benefit employees across several departments, including education, police, healthcare and other government services. The Indian Express reported that the measure could entail an additional annual financial liability of around ₹900 crore.
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