The pay divide: Beyond DA, why Punjab employees want two orders scrapped

For employee unions, these are not merely administrative orders. They represent “gradual erosion of the financial security and status traditionally associated with a government job”. They are now demanding that both decisions be withdrawn.

What was the January 15, 2015 order?

The January 15, 2015 order, issued during the SAD-BJP government when Parminder Singh Dhindsa was Finance Minister, introduced a fixed-pay system for newly recruited state government employees during probation.

Initially, recruits were paid fixed emoluments equivalent to the minimum of the applicable pay band, instead of the full salary attached to the post. They were denied grade pay, annual increments and several other salary components, though travelling allowance was allowed.

The probation period, initially two years, was extended to three years in September 2016. For recruits in departments such as police, education, health (except doctors) and civil administration, the fixed remuneration was initially Rs 10,000 a month. After completing probation, they became entitled to the regular Punjab pay scale, including applicable components such as grade pay.

The system was later changed under the Congress government, with probationers receiving the basic pay of their posts instead of the fixed amount. For example, the basic pay was Rs 19,900 for a clerk, Rs 29,200 for a primary teacher, and Rs 35,400 for a senior secondary teacher. Basic pay, however, is not take-home pay, as deductions such as NPS contributions are made.

What changed on July 17, 2020?

The July 17, 2020 Finance Department order, issued when Congress was in power and Manpreet singh Badal was Finance Minister, changed the pay structure for fresh recruits in government departments and entities. It capped the pay scales for appointments made on or after that date at the corresponding scales admissible under the Seventh Central Pay Commission.

Departments were directed to notify the revised scales and amend their service rules with Finance Department approval. In effect, July 17, 2020 became a cut-off date, creating different pay regimes for employees recruited before and after it.

Why are employees opposing these two orders?

The unions’ main objection is that the July 17, 2020 order created a two-tier pay structure, with new recruits getting lower starting salaries than employees appointed before the cut-off date, despite doing the same jobs.

Harjinder Singh, president of the 3704 Teachers Union and a January 2021 recruit, said the disparity was stark. “Employees recruited before July 17, 2020, are getting a basic pay of Rs 45,400 as per the Punjab scale for a senior secondary teacher, while teachers like me, recruited after the July 17, 2020 notification, get Rs 35,400 as basic pay,” he said.

Unions argue that the lower basic pay also affects DA, HRA and other salary-linked benefits, widening the gap over time. They are therefore seeking withdrawal of the order and restoration of the earlier pay structure.

How do the two orders work together today?

The two orders continue to affect new recruits. A person recruited today is governed by the post-July 17, 2020 pay scale and, during the three-year probation, receives only the prescribed basic pay.

After probation, the employee gets the applicable salary components and annual increments. “Normally, the annual increment is 3% of the basic salary and these employees are under NPS as well,” said Sahil Sharma, general secretary of the Punjab Civil Secretariat Employees Union

Why is AAP being targeted?

Employee unions accuse the AAP of going back on its pre-election promises to scrap employee-unfriendly policies and restore Punjab’s traditional pay scales. They say the Bhagwant Mann government has instead retained and implemented both the 2015 and 2020 orders.

“Now they are implementing both notifications of the previous governments in letter and spirit,” said Digvijay Pal Sharma, president of the Democratic Teachers Front, Punjab.

The unions want both orders withdrawn and the Punjab Pay Commission recommendations implemented.

The larger DA battle

The pay-scale dispute is intertwined with employees’ larger demand for pending DA arrears. Unions claim 18% DA has been pending since January 2023. DA is generally revised twice a year, in January and July, based on inflation.

Finance Minister Harpal Singh Cheema said previous SAD-BJP and Congress governments had left Rs 14,161 crore in arrears. The AAP government, he said, has paid around Rs 5,000–6,000 crore and submitted a proposal before the Punjab and Haryana High Court for clearing the balance. On restoring Punjab’s own pay scales, as promised by AAP, he said the demand was “under consideration”.

Employees dispute the government’s calculation. Sahil Sharma said the previous Congress government cleared the DA backlog in 2021, excluding interest, and that the present arrears have accumulated since January 2023. He said the AAP government released only one instalment — for July 2022 — after taking office.

The disparity remains stark: Central employees get 60% DA, against 42% in Punjab. The High Court has also ordered payment of pending arrears. Employee unions will meet CM Mann on August 27.

What about the Punjab Pay Commission?

Employees are also demanding implementation of the Punjab Pay Commission’s recommendations. Sahil Sharma said the commission’s last report was submitted in July 2021, but subsequent volumes have not been submitted. He also claimed the anomaly committee has not met since then.

How many employees are affected?

Punjab has about 3.5 lakh regular employees and a similar number of pensioners, besides nearly one lakh contractual and outsourced workers. Unions estimate the total at nearly eight lakh.

Sharma claimed more than two lakh employees are affected by the two pay-related notifications, many of them also covered under the NPS.

“Government jobs are no longer an attraction for the masses. The government itself is trying to turn people away from government jobs instead of creating employment opportunities and fulfilling its responsibility,” he said.