Breaking: Punjab to release 60 % DA to 85,000 employees, announces Aman Arora; Watch Video
Babushahi Bureau
Chandigarh, September 4, 2026: The Punjab government is set to provide relief to around 85,000 employees recruited after July 17, 2020, with the Cabinet Sub-Committee deciding to recommend an increase in their Dearness Allowance (DA) from the existing 42% to 60%.
Cabinet Minister and member of the Cabinet Sub-Committee Aman Arora announced the decision, saying the recommendation would now be sent to Chief Minister Bhagwant Mann for final approval.
Arora said government employees are an integral part of the administration and the state government is committed to protecting their interests.
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He said that since July 17, 2020, newly recruited Punjab government employees have been paid salaries according to Central Government pay scales instead of the pay scales applicable in Punjab before that date.
According to Arora, around 85,000 employees recruited under this arrangement are currently receiving basic pay as per the Central pay structure. However, their DA is lower than that of Central Government employees. While Central Government employees are receiving 60% DA, these Punjab employees currently receive 42%.
The Cabinet Sub-Committee has therefore recommended raising their DA to 60%, which would bring it at par with the DA being paid to Central Government employees.
Arora clarified that the proposed change specifically concerns employees recruited after July 17, 2020. He said the government has no objection if employees recruited before that date are receiving higher salaries or other benefits under the earlier system.
He further said the Punjab government had maintained the same position before the Punjab and Haryana High Court and has now also filed a Special Leave Petition (SLP) in the Supreme Court against the High Court decision in the DA matter.
Arora said the government’s position was that no Punjab government employee should take home less money than a Central Government employee in a comparable situation.
The recommendation of the Cabinet Sub-Committee will now be placed before Chief Minister Bhagwant Mann. Arora expressed hope that the Chief Minister would take a final decision soon.
If approved, the move could directly benefit around 85,000 Punjab government employees recruited after July 17, 2020, through an increase in their DA from 42% to 60%.