After weeks-long standoff, Punjab approves 8% DA hike for employees, pensioners

The Punjab Government says the 8% hike will require an additional Rs 1,750 crore over the remaining seven months of the current financial year.

Punjab DA hike 2026, Punjab government DA hike, Punjab employees DA hike, ,Punjab pensioners DA hike, Punjab dearness allowance hike, Bhagwant Mann DA hike, Aman Arora Punjab DA hike, Punjab government DA arrears, Indian Express news, Punjab newsThe two four-per-cent instalments will take the DA for Punjab Government employees and pensioners to 50 per cent. (File Photo)

The Punjab Government Friday announced an eight per cent hike in two instalments of dearness allowance (DA) from October, ending a weeks-long standoff with state employees.

The issue had been at the centre of the employees’ agitation over the past few weeks, with employee and pensioner organisations demanding the release of pending DA instalments and arrears, along with other service-related demands.

The decision followed a meeting in Chandigarh between Chief Minister Bhagwant Mann and representatives of employee and pensioners’ organisations. Punjab Minister Aman Arora told reporters that the meeting was held in a “congenial environment”, and Mann had a “good discussion” with the employee representatives.

The two four-per cent instalments will take the DA for government employees and pensioners to 50 per cent.

Arora said the decision to release the eight per cent DA would put an additional burden of Rs 248 crore every month on the state exchequer and require an additional Rs 1,750 crore over the remaining seven months of the current financial year.

He said the court cases filed in connection with the dispute were also discussed, with both the Chief Minister and employee representatives saying they did not want to pursue them.

While the DA issue has been resolved for now, the organisations have several other pending demands. Arora said they would take up these issues in separate monthly meetings with the employee organisations.

Earlier stance

The standoff had also led to a failed meeting between Mann and employee representatives in Jalandhar. Mann then maintained that employees should withdraw their agitation before talks could be held. The government had also invoked the “no work, no pay” principle during the agitation over employees’ absence from duty.

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The employee organisations refused to call off the protest and the Chief Minister left without holding the proposed meeting.

The situation changed after representatives of the employee organisations met Chief Secretary KAP Sinha. This paved the way for a meeting with Mann Friday.

Finance Minister Harpal Singh Cheema, Arora, and Cabinet Minister Dr Baljit Kaur attended Friday””s meeting. Twelve representatives of various employee and pensioner organisations participated in the meeting.

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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