Punjab DA Hike: Bhagwant Mann's government in Punjab has taken a major decision for government employees. Under this decision, the DA of approximately 85,000 employees recruited after July 17, 2020, could increase from 42% to 60%.
Punjab's 7th Pay Commission employees hold lottery.
Punjab's 85,000 government employees are set to receive a Janmashtami gift. A three-member Cabinet Sub-Committee of the Punjab government has recommended increasing the dearness allowance (DA) from 42% to 60% for the state's approximately 85,000 government employees.
Announcing this on September 4, 2026, Cabinet Minister Aman Arora stated that approximately 85,000 government employees recruited after July 17, 2020, would receive a significant increase in their dearness allowance (DA). He stated that this would be implemented soon as a "Janmashtami gift" after final approval from Chief Minister Bhagwant Mann .
Which employees will get the benefit?
It's important to note that this DA increase won't apply to all government employees. Only those 85,000 employees recruited after July 17, 2020, will benefit. This is because employees recruited after July 2020 were receiving a basic salary based on the central government's 7th Pay Commission pay matrix, but their DA was frozen at the old Punjab pattern (42%). This decision will now make their DA equal to that of central government employees (60%).
Who will not benefit?
Of the total 400,000 employees in Punjab, approximately 315,000 are still outside this scope. Employees recruited before July 2020 are covered under the rules of the Punjab Pay Commission. This announcement currently offers no relief for these older employees.
Why did the government suddenly take the decision?
Punjab government employee unions have been protesting for a long time over their pending 18% DA arrears and salary discrepancies. Employees have issued a serious threat of mass casual leave on September 8, 2026. Previously, on August 27, more than 300,000 Punjab government employees went on a statewide strike.
Meanwhile, the All India State Government Employees Federation also warned of nationwide protests if punitive action was taken against Punjab employees.
To resolve this major deadlock between the Punjab government and the state employees, the state government tried to defuse the situation through talks and on Thursday, September 3, three senior ministers of the government held a joint press conference and expressed their willingness to sit face to face and talk to the employees.
