Punjab DA Dispute Intensifies, 3 Ministers to Present Government’s Stand

September 3, 2026

Amritsar: The dispute over dearness allowance (DA) for government employees in Punjab has now reached the Supreme Court and the High Court. A new petition filed by the employees will be heard today in the Punjab and Haryana High Court. Meanwhile, three state government ministers—Harpal Singh Cheema, Aman Arora, and Baljeet Kaur—will hold a press conference this afternoon to present the government’s position on the DA issue.

The government maintains that it is not against the interests of employees and that they will be given their legitimate rights. However, the government has cited its financial situation regarding the payment of DA.

Case reaches Supreme Court, 15-day payment order challenged

On September 1, the Punjab government challenged the High Court’s order in the Supreme Court directing the state government to pay employees ₹14,191 crore in DA arrears from 2016 to 2021 within 15 days.

The government argues that releasing such a large sum at once is difficult for the state. The amount of ₹14,191 crore is equivalent to approximately three months’ salary and pension expenses.

Government says Punjab employees are already receiving higher salaries

According to the government, the basic pay of Punjab employees is higher than that of many central government employees. Consequently, despite the lower DA, their total take-home pay is higher than that of central government employees in many cases.

Citing an example, the government stated that with 42% DA, the salary of a clerk and constable in Punjab is approximately ₹54,812, while at the central level, despite 60% DA, it is approximately ₹36,960. According to the government, this salary in Punjab is approximately 48% higher.

Punjab’s DA is currently 42%, while central government employees receive 60% DA. The state government claims that if DA is also increased to 60% in Punjab, the salary of these employees will reach approximately ₹61,760.

Expenditure on salaries and pensions also cited

The government also cited financial pressure as a major reason for increasing the DA. It states that Punjab spends approximately 51% of its total revenue on salaries and pensions, while the average for larger states is approximately 38%.

Salaries, pensions, and loan interest account for approximately 82% of the state’s revenue expenditure. The estimated expenditure on salaries and pensions for the year 2025-26 is estimated to be approximately ₹58,064 crore.

The government also states that Punjab regulations do not mandate the same DA as the central government. The state can determine its DA based on its financial capacity.

Government claims: No refusal to pay arrears, payments being made in installments

The government has clarified that it is not reneging on its DA arrears to employees. Following Cabinet approval on February 13, 2025, the arrears were planned to be paid in phases over four financial years. According to the government, more than ₹6,100 crore has been paid so far.

The government has also stated in the Supreme Court that it is willing to consider any necessary increase in DA to bring the total take-home pay of employees closer to the level of central government employees. However, it argues that implementing uniform DA for all employees will put an additional financial burden on those who currently receive higher salaries than the central government.

The government also found the comparison between IAS officers and state employees to be inappropriate. According to it, IAS officers fall under the All India Service and their DA is determined by the central government, while Punjab employees have different service rules.