Punjab govt releases 8% DA hike; employee unions question unpaid arrears

State employees call a union meeting for September 27 to decide on further action after the finance department omits arrears timeline.

Chandigarh: The Punjab finance department on Wednesday issued a communication to all department heads announcing an 8% increase in dearness allowance (DA) for state government employees. The hike takes effect on September 1, 2026, and will be disbursed along with October salaries.

Employee leaders criticised the order for failing to clarify effective dates for two pending 4% DA installments and for omitting details regarding retroactive arrears. (HT file photo)

The announcement follows a meeting last week between chief minister Bhagwant Mann and employee union leaders. The state agreed to release the DA installment—costing an estimated ₹231 crore per month—leading unions to temporarily call off their protests.

Referring to a prior communication dated October 30, 2024, the finance department confirmed that the 8% increase raises the total DA rate for Punjab government staff from 42% to 50%.

However, employee leaders criticised the order for failing to clarify effective dates for two pending 4% DA installments and for omitting details regarding retroactive arrears.

A general secretary of the Civil Secretariat Employee Union said that the absence of a timeline suggests the state government is attempting to decouple Punjab’s DA structure from central government patterns, which it historically followed.

The Sanjha Mulazim Manch—an umbrella organisation representing 153 state employee unions—will meet on September 27 to decide whether to accept the government’s offer or resume the agitation.