Punjab raises dearness allowance to 60% for 85,000 government employees

A cabinet sub-committee in Punjab has recommended raising the dearness allowance from 42 per cent to 60 per cent for approximately 85,000 government employees recruited after 17 July 2020, cabinet minister Aman Arora announced. The recommendation has now been sent to the chief minister for approval.

18 per cent hike targets post-2020 recruits

The proposed 18 per cent increase will benefit only those employees hired on central pay scales after 17 July 2020. These employees currently receive salaries matching central pay scales with 42 per cent DA, creating a disparity with those recruited before that date who draw salaries under the Punjab Pay Commission.

Arora described the decision as a 'Janmashtami gift' for employees. However, he clarified that the DA hike will not apply to employees recruited before July 2020.

Twin pay scales create confusion

The existence of two separate pay scales, Punjab's original scales and those aligned with the 7th Central Pay Commission, has created confusion and differing interests among employees, Arora said. Punjab's original pay scales are traditionally 30 to 70 per cent higher than central basic pay. Even after adding 60 per cent DA to central basic pay, Punjab's pay scales and employees' take-home salaries remain higher, according to Arora.

The decision to recruit employees on central pay scales after 17 July 2020 was taken by the previous Congress government. Over the past six years, 85,000 such employees have been hired.

Announcement follows statewide strike

The recommendation comes after more than three lakh government employees staged a statewide strike on 27 August. Among their demands was the release of pending 18 per cent DA. Employees have also warned of collective casual leave on 8 September if the government does not withdraw recent notices of disciplinary action against those who participated in the 27 August protest. They have given the government a deadline of 7 September to withdraw the notices.

The Punjab government on Thursday appealed to employee unions to resolve issues through dialogue rather than confrontation, calling employees the backbone of good governance.

Ministers defend salary expenditure

At a press conference on Thursday, three ministers, Harpal Singh Cheema, Aman Arora and Baljit Kaur, defended the state's salary structure. Cheema said Punjab government employees are among the highest-paid in the country, earning more than their counterparts in Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh when basic pay and DA are combined. Punjab employees receive approximately 28 per cent more salary than Gujarat employees, Cheema claimed.

Punjab spends around 51 per cent of its total revenue on employees and pensioners, the highest in the country compared to the national average of approximately 38 per cent, Cheema said. DA was increased to 42 per cent in November 2024.

Minister Baljit Kaur explained that salaries, pensions and DA in Punjab are determined under the Punjab Civil Service Revised Pay Rules, 2021, and Article 309 of the Constitution, rules framed during the Congress government. These rules contain no provision for fixed DA, central indexation, automatic formulae or mandatory application of central government rules, she said. How much DA to give and when is decided by the Punjab government, Kaur added.