While central employees await a second Dearness Allowance (DA Hike) increase in July, which has not yet been announced by the central government, the Punjab government has provided a significant gift to its state employees and pensioners ahead of the Diwali holidays.
The Punjab government has announced an 8% increase in the inflation allowance/Dearness Allowance, effective from the first day of next month, i.e., October 1st.
Before the festive season, the Punjab government, led by Bhagwant Mann, announced a gift for approximately eight hundred thousand employees and pensioners. Following the announcement of the 8% increase in the Dearness Allowance, the DA will become 50% from October 1st. The payment will be made in two installments of four percent each.
This major government decision was taken after prolonged protests by state employees and pensioners who raised issues regarding the payment of arrears for allowances and other service demands.
Chief Minister Bhagwant Mann held a meeting with representatives of employee and pensioner organizations last Friday, September 18th, after which this major announcement was made.
Gurnam Singh Virk, president of the Punjab Association of Ministerial Services, informed about the government's decision, clarifying that the increase in the inflation allowance will take effect from October 1st, and that the government will make the payment in two phases. He also noted that the government assured employee representatives that other pending issues would be discussed.
CM Bhagwant Mann stated that this government decision will provide additional financial support to state workers, pensioners, and their families during the festive period. He emphasized that the state government is committed to the real demands of employees and pensioners, and that issues will be examined and discussed according to existing rules, financial implications, and legal provisions.
Nevertheless, the dispute over the outstanding debt of 14,191 crore rupees owed to employees and pensioners continues. Bhagwant Mann's government announcement on the DA hike does not resolve this pre-existing issue. Employees demand compliance with the High Court of Punjab and Haryana order, which mandates the government to pay the arrears within two weeks. The state has challenged this order in the Supreme Court, arguing that such a large payment in such a short time is economically unfeasible.

