The Punjab government has announced an eight percentage point increase in dearness allowance (DA) for its approximately eight lakh employees and pensioners. This significant decision, effective from October 1, will raise the overall DA rate to 50%.
Chief Minister Bhagwant Mann confirmed the hike following a meeting on September 18 with representatives from various employee and pensioner organizations. The enhanced DA will be paid in two equal installments, each comprising four percentage points.
Festive Season Relief Amidst Ongoing Issues
This announcement comes ahead of the festive season, providing much-anticipated financial relief. It also follows a period of sustained protests by government employees and pensioners, who have been vocal about pending allowance payments and other service-related demands.
CM Mann emphasized the state government's commitment to addressing the genuine concerns of its workforce. He stated that all issues would be examined thoroughly, considering applicable rules, financial implications, and legal positions. Ministers Aman Arora and Baljeet Kaur, along with Chief Secretary KAP Sinha and Secretary General Administration KK Yadav, were present during the pivotal meeting.
Arrears Dispute Remains Separate
It is important to note that this DA hike does not resolve a separate, ongoing dispute concerning accumulated dearness allowance and dearness relief (DR) arrears. Employees have been pressing for compliance with a Punjab and Haryana High Court directive to clear these outstanding dues, estimated at around ₹14,191 crore, within a short timeframe.
The state government has challenged this order in the Supreme Court, citing the financial impossibility of disbursing such a large sum within the stipulated period. This arrears issue had escalated in August, with over three lakh government employees reportedly taking mass casual leave to protest for their demands, including the release of 18% pending DA.
Future Discussions Planned
Further discussions between the government and employee representatives are scheduled for the first week of October. The agenda for these meetings is expected to cover a range of demands, including those related to the Old Pension Scheme, salaries during probation periods, and specific issues affecting ASHA and mid-day meal workers.
Chief Minister Mann reiterated that employee welfare is intrinsically linked to the quality of public services, highlighting that a satisfied workforce contributes significantly to the efficient functioning of the administration. The government plans to continue its dialogue with employee and pensioner representatives on these remaining critical issues.