Punjab government hikes dearness allowance by 8 %, issues notification
The Finance Department notification said the revised rate will be effective from September 1, 2026, and has received the approval of the Punjab Governor.
PTC News Desk: A day after the Punjab and Haryana High Court directed Punjab’s Chief Secretary to appear before it over the pending Dearness Allowance (DA) issue, the state government issued a notification announcing an 8% increase in DA for government employees.
With the latest hike, the DA rate has increased from 42% to 50%. The Finance Department notification said the revised rate will be effective from September 1, 2026, and has received the approval of the Punjab Governor.
The order has been sent to senior government officials, including Special Chief Secretaries, Additional Chief Secretaries, Financial Commissioners, Principal Secretaries, Administrative Secretaries, department heads, divisional commissioners, deputy commissioners and district and sessions judges.
The Punjab and Haryana High Court has directed Chief Secretary K A P Sinha to appear personally on October 5 after taking note of the state’s apparent non-compliance with its earlier directions on pending DA and Dearness Relief dues.
What did the High Order said ?
On August 3, the High Court directed the Punjab government and PSPCL to release all pending DA and DR instalments to employees and pensioners within two weeks, at rates applicable to All India Services officers serving in Punjab. The court also directed the state to pay 6% annual interest in case of default and restricted certain unproductive expenditure, including large-scale advertising, until the dues were cleared.
The Punjab government later approached the Supreme Court, challenging the High Court's order. It argued that clearing the pending dues, estimated at around ₹14,191 crore, within the stipulated period was not financially feasible.
On September 18, the Punjab government announced an 8% DA increase following talks with employee and pensioner unions. The increase raised the DA from 42% to 50% and was reported as part of efforts to address the employees’ demands.
However, the DA arrears issue remains before the courts. The state government has said the matter is pending before the Supreme Court and that its eventual decision will be binding on all parties.
The Chief Secretary is scheduled to appear before the Punjab and Haryana High Court on October 5. The court proceedings will determine the next steps regarding the implementation of its earlier orders on pending DA and DR dues.