Punjab’s around 85,000 government employees are set to receive a special Janmashtami gift.
A three-member Cabinet Sub-Committee of the Punjab government has recommended increasing the Dearness Allowance (DA) from 42% to 60% for these employees.
Cabinet Minister Aman Arora announced the decision on September 4, 2026. He said around 85,000 government employees recruited after July 17, 2020, would get the benefit.
The DA hike will be implemented soon after final approval from Chief Minister Bhagwant Mann.
Which Employees Will Get the Benefit?
The DA increase will not apply to all Punjab government employees. Only employees recruited after July 17, 2020, will benefit from this decision.
These employees receive their basic salary according to the Central Government’s 7th Pay Commission pay matrix. However, their DA was fixed at 42% under the old Punjab government pattern.
With this decision, their DA will increase to 60%, bringing it in line with the DA given to central government employees.
Who Will Not Get the Benefit?
Punjab has around 400,000 government employees in total. Of these, approximately 315,000 employees will not benefit from the latest DA decision.
Employees recruited before July 2020 are covered under the Punjab Pay Commission rules. The latest announcement does not provide any relief to these older employees.
Why Did the Government Take This Decision?
Punjab government employee unions have been protesting for a long time over pending 18% DA arrears and differences in salary.
Employees had also threatened to go on mass casual leave on September 8, 2026. Earlier, on August 27, more than 300,000 Punjab government employees took part in a statewide strike.
The All India State Government Employees Federation also warned that it could launch nationwide protests if action was taken against Punjab government employees.
Government Held Talks With Employees
To end the ongoing dispute between the Punjab government and its employees, the government started talks with employee representatives.
On Thursday, September 3, three senior Punjab ministers held a joint press conference. They expressed their willingness to meet the employees face to face and discuss their demands.
The recommended DA increase is being seen as an effort by the government to ease the situation. However, the hike will be implemented only after final approval from Chief Minister Bhagwant Mann.
