Punjab plans DA hike from 42 to 60 per cent for 85,000 employees recruited after July 2020

The Punjab government has decided to raise the Dearness Allowance (DA) of around 85,000 government employees from 42 per cent to 60 per cent, seeking to address a pay disparity affecting personnel recruited after July 17, 2020, Cabinet Minister Aman Arora said on Friday.

The decision was taken 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. Arora described the proposed increase as a “Janmashtami gift” for employees recruited over the past six years.

Pay disparity addressed

The proposed hike applies to employees recruited after July 17, 2020, whose basic salaries are determined according to the Central government’s 7th Pay Commission matrix but who have continued to receive DA under Punjab’s pay pattern. Employees recruited before the cut-off date, who are governed by the Punjab Pay Commission matrix, will not be covered by the decision.

Arora said the distinction was necessary because employees recruited before July 2020 continued to benefit from Punjab’s historically higher basic pay scales. The pay structure for subsequent recruits was changed following a decision approved by the previous Punjab Cabinet in December 2020, creating two broad categories of employees.

According to Arora, employees in several major cadres under Punjab-specific pay scales have historically earned salaries 30 to 70 per cent higher than their Central government counterparts. However, post-July 2020 recruits do not receive those higher entry-level salaries and therefore have a stronger case for receiving DA corresponding to the Central pay pattern, he said.

Strike pressure continues

The announcement comes amid continuing unrest among state government employees over pay and other demands. More than three lakh employees went on a statewide strike on August 27, seeking, among other things, the release of a pending 18 per cent DA.

Employees have threatened to proceed on mass casual leave on September 8 unless the government withdraws a notice contemplating disciplinary action against personnel who remained on “unauthorised absence” during the August 27 strike. The unions have given the government until September 7 to withdraw the notice.

Arora said the state had already placed its position regarding DA for post-2020 recruits before the Punjab and Haryana High Court and subsequently before the Supreme Court through a Special Leave Petition.

Taking aim at the Opposition, Arora challenged the Congress and BJP over their invocation of Article 14 to demand pay parity. He argued that governments run by the two parties should first bring their own employees’ pay and allowances in line with Central scales before criticising Punjab.

The Punjab government had on Thursday appealed to employee unions to resolve their differences through dialogue rather than confrontation, describing government employees as the backbone of good governance.