Punjab Government Approves 8% DA Release for State Employees, Payment Due With September Salary

September 18, 2026

Chandigarh: Ending a three-week standoff with state employees, the Punjab government on Friday agreed to release two instalments of Dearness Allowance (DA) of 4% each. The combined 8% DA, backdated to July 2023, will be disbursed on October 1 along with the September salary.

The breakthrough came during an hour-long meeting between Chief Minister Bhagwant Mann, Cabinet Ministers Aman Arora and Baljit Kaur, and 12 representatives of the Sanjha Mulazim Manch (Joint Employees Forum) on Friday.

8% DA Release to Add ₹231 Crore Burden

Speaking after the meeting, Aman Arora said the DA payout would put an additional ₹231 crore burden on the state exchequer.

The agreement brings an end to the immediate deadlock between the state government and employees, although several outstanding issues remain under discussion.

Gurnam Singh Virk, convener of the Sanjha Mulazim Manch, said the Chief Minister had agreed to hold a follow-up meeting in the first week of October to discuss the employees’ remaining demands.

However, Virk clarified that ongoing court proceedings concerning older DA arrears and salary discrepancies would continue unaffected.

Older DA Arrears Case Pending Before Supreme Court

The Punjab government had earlier challenged an August 3 Punjab and Haryana High Court order directing it to clear pending DA arrears dating back to 2016 within 15 days, failing which an 18% annual interest penalty could be imposed.

The matter remains pending before the Supreme Court.

The latest agreement between the government and employees concerns the release of the two 4% DA instalments and does not bring the separate legal dispute over older arrears to an end.

Government Agrees to Withdraw Disciplinary Notices

Friday’s agreement followed a prolonged standoff that escalated after an August 27 meeting in Jalandhar was cancelled when Chief Minister Mann asked employees to end their protests before holding talks.

In response, union members declared mass casual leave on September 8 and threatened to hold a mock Vidhan Sabha session on September 30, followed by blockades outside ministers’ residences in October.

Satish Rana, who represents pensioners within the forum, said the government had also agreed to withdraw disciplinary notices issued on August 27 and September 8 against absent employees.

Sukhchain Singh Khehra, head of the Civil Secretariat Employees Union, said employees had accepted the government’s immediate offer while keeping avenues open for negotiations on their remaining demands.

The employees’ forum, however, rejected the government’s request to file an affidavit in the High Court stating that all disputes had been settled.