Chandigarh: The Punjab government has acknowledged that its pending Dearness Allowance (DA) and Dearness Relief (DR) dues for government employees and pensioners have reached Rs 22,818 crore. The disclosure was made in an affidavit filed before the Punjab and Haryana High Court on behalf of Chief Secretary KAP Sinha.
According to the affidavit, the total liability towards employees and pensioners stands at approximately Rs 32,418 crore. The government has also acknowledged that it is required to pay 6 per cent annual interest on the outstanding arrears under the High Court’s August 3 order.
The affidavit states that the Supreme Court has not stayed the High Court’s direction. Therefore, the state government remains bound to comply with the order.
DA Hike to Add Rs 4,712 Crore to Annual Expenditure
The government informed the High Court that bringing Punjab’s DA rates in line with those of the Central government would put an additional annual burden of around Rs 4,712 crore on the state exchequer.
During the 2025-26 financial year, Punjab spent approximately Rs 58,064 crore on salaries and pensions. The government indicated that special budgetary provisions may be required to clear the pending dues.
DA Increased from 42% to 50%
The affidavit also detailed the recent increase in Dearness Allowance for government employees and pensioners.
A decision to raise DA by 8 percentage points was taken at a meeting chaired by the Chief Minister on September 18. The Finance Department issued an order on September 23, increasing the rate from 42 per cent to 50 per cent.
The revised rate came into effect from September 1, 2026. Employees and pensioners received the increased amount in October along with their salary and pension for September.
Punjab Government Challenges High Court Order in Supreme Court
The Punjab government had filed a Special Leave Petition (SLP) in the Supreme Court on September 1, challenging the High Court’s August 3 order. After the Supreme Court Registry pointed out procedural defects, the petition was refiled on October 1.
In its affidavit, the government opposed the contention that the delay in clearing the arrears should be treated as wilful disobedience of the court’s order.
Chief Secretary KAP Sinha maintained that the government respects the court’s directions and acknowledged its liability to pay the pending DA and DR arrears along with 6 per cent annual interest to employees and pensioners.