The Punjab government on Thursday extended an olive branch to protesting 4.2 lakh state employees, urging them to abandon “confrontation approach” and “return to the negotiating table” and offering them salary plus dearness allowance on par with central government staff.
Sanjha Mulazam Manch, an umbrella body of employee unions, however, demanded the immediate withdrawal of disciplinary orders issued during their August 27 strike as a strict precondition for any dialogue. They also termed the government’s salary parity offer as “diversionary tactics.”
The standoff involves government employees and three lakh pensioners demanding the immediate release of an 18% pending DA and arrears.
Addressing a joint press conference on Thursday, finance minister Harpal Singh Cheema, flanked by his cabinet colleagues Aman Arora and Baljit Kaur, proposed an alternative to a mechanical DA hike. Cheema stated the government is prepared to match the overall take-home salary of central government employees, asserting that Punjab already pays among the highest salaries in the country.
“Employees are the backbone of good governance. We appeal to the unions to recognise the political opportunism of opposition parties, which made promises before elections without making corresponding financial provisions,” industries and commerce minister Arora said. “We are ready to resolve outstanding issues across the table with chief minister Bhagwant Mann so that the interests of employees are protected without placing an unbearable burden on the people of Punjab,” he added.
The ministers’ appeal comes just days after the state government approached the Supreme Court to challenge a recent Punjab and Haryana high court directive asking the state to clear all pending DA and dearness relief arrears (roughly ₹14,000 crore) within a fortnight. The government said that generating such a huge pay-out in two weeks was constitutionally and fiscally impossible.
{{/usCountry}}The ministers’ appeal comes just days after the state government approached the Supreme Court to challenge a recent Punjab and Haryana high court directive asking the state to clear all pending DA and dearness relief arrears (roughly ₹14,000 crore) within a fortnight. The government said that generating such a huge pay-out in two weeks was constitutionally and fiscally impossible.
{{/usCountry}}Defending the state’s fiscal position, Cheema highlighted that Punjab spends 51% of its total revenue on salaries and pensions, significantly higher than the national average of 38%. Drawing comparisons, he noted that the basic pay plus DA of Punjab employees exceeds that of Haryana, Rajasthan, Uttar Pradesh, and Bihar, while salaries in Gujarat trail Punjab by 28%.
Cheema said that since assuming power, the AAP government has steadily increased the DA from 28% to 42% (34% in October 2022, 38% in December 2023, and 42% in 2024). He accused previous administrations of leaving behind ₹14,000 crore in uncleared arrears, noting that the AAP government has already cleared ₹4,500 crore.
Take state’s fiscal position into account: Ministers
“Increasing the DA to 60% would place an additional annual burden of around ₹6,500 crore on the state exchequer,” said minister Arora. “This financial reality has to be balanced against the state’s responsibility to fund schools, hospitals, infrastructure, and other essential services for the three crore people of Punjab.”
Social security minister Kaur further clarified the statutory framework, saying that state salaries are governed by the Punjab civil services (Revised Pay) Rules, 2021, framed under Article 309 of the Constitution. “These rules do not prescribe any fixed DA percentage or an automatic formula requiring Punjab to match the central government’s DA rate,” she said.
Will stick to protest plan: Unions
Sanjha Mulazam Morcha leader Sukchain Singh Khera made it clear that no negotiations will occur until the government rescinds its move to take disciplinary action against employees marked as “unauthorised absent” during the August 27 statewide strike.
“We had gone to meet the chief minister on August 27 but were denied an audience. Employees never wanted any confrontation, but the state government is forcing us to take drastic steps,” said Sahil Sharma, general secretary of the civil secretariat employees’ union.
Sushil Kumar Fauji, convener of the Sanjha Mulazim Manch, stated that the government had already floated the idea of salary parity before HC. He said matching central pay requires setting up the Seventh Pay Commission, which is practically impossible now. Accusing the state of creating confusion after moving the top court, he said the employees stand firm on the immediate release of DA arrears.
Fauji said the unions plan to proceed with mass casual leave on September 8. Further actions include the gherao of ministers’ residences on September 12-13 and September 19-20, a mock Vidhan Sabha session on September 30, a massive employees’ rally in Sangrur on October 10, and another round of mass casual leave on October 21-22, he added.