85,000 Punjab govt employees to get higher DA; cabinet panel recommends 60%

Chandigarh: The Punjab government has decided to increase the Dearness Allowance (DA) for around 85,000 government employees recruited after July 17, 2020, from 42 per cent to 60 per cent, Cabinet Minister Aman Arora said on Friday.

The proposed 18-percentage-point increase follows a recommendation by a three-member Cabinet Sub-Committee constituted to examine employees' issues. The recommendation will now be sent to Chief Minister Bhagwant Mann for approval, Arora said.

The move is aimed at addressing disparities between employees recruited before and after July 17, 2020. Those appointed after the cut-off date were placed on pay scales equivalent to the Central government scales and were receiving 42 per cent DA, while employees recruited earlier were paid under the Punjab Pay Commission's scales.

Arora said Punjab currently has two sets of pay scales, resulting in disparities and confusion among employees.

"Punjab basic pay scales, which traditionally are higher, range from 30 to 70 per cent more than the Central basic pay. And when DA is added to it, which is currently 42 per cent, the salary increases much above the Central pay scales," he said.

He said the revised DA would still leave employees on Punjab's pay scales with higher salaries.

"When we calculate and compare, even with 60 per cent DA added to Central basic pay, the Punjab pay scales and take-home salaries are higher," he said.

Arora said the decision to recruit employees on Central pay scales after July 17, 2020 was taken by the previous Congress government.

Around 85,000 employees have been recruited under the system over the past six years.

Describing the proposed hike as a "Janmashtami gift", Arora said the Cabinet Sub-Committee had recommended increasing the DA of these employees from 42 per cent to 60 per cent. However, he clarified that the increase would not apply to employees recruited before July 2020.

"From day one, the Bhagwant Mann government has been talking about the welfare of every section. We cannot imagine good governance without our employees," he said.

The announcement comes against the backdrop of growing tensions between the state government and employee unions. More than three lakh government employees went on a statewide strike on August 27, demanding, among other things, the release of their pending 18 per cent DA.

Employee unions have also threatened mass casual leave on September 8 if the government does not withdraw a notice proposing disciplinary action against employees who remained absent without authorisation during the August 27 strike.

The unions have set September 7 as the deadline for withdrawing the notice.

The Punjab government on Thursday appealed to employee unions to resolve their demands through dialogue rather than confrontation, describing employees as the backbone of good governance.