CHANDIGARH: With less than four months to go before the 2027 Assembly elections, Punjab Chief Minister Bhagwant Mann today announced a 3 per cent increase in Dearness Allowance (DA) for government employees and pensioners as a Diwali gift. The hike will take the DA to 53 per cent, up from 28 per cent in 2022, benefiting around four lakh employees and 3.5 lakh pensioners. The increase will entail an additional expenditure of Rs 330 crore.
With the enhanced DA and Dearness Relief (DR) set to be reflected in December salaries and pensions, the announcement marks an 11 percentage-point increase within just two months, benefiting nearly 8 lakh employees and pensioners. Mann said that, unlike previous governments, which frequently cited empty treasuries, his government had prioritised employee welfare and ensured that financial constraints were never used as an excuse to withhold their rightful benefits.
"Today, as a major Diwali gift to nearly 8 lakh employees and pensioners of Punjab, we have announced a 3 per cent increase in Dearness Allowance (DA). With this, the DA has risen to 53 per cent, providing employees with an annual financial benefit of approximately Rs 3,988 crore. Employees are the backbone of our government, and we are fully committed to their welfare, rights and overall well-being. Heartiest Diwali greetings to all employees and their families," Mann said.
The Chief Minister acknowledged the immense contribution of government employees and pensioners to the state's administration and public services.
"Employees and pensioners are members of the Punjab Government family and are the backbone of the administrative machinery. They are performing their duties with dedication and commitment to address the grievances of the common people, maintain law and order, and implement various welfare schemes," he said.
"The success we have achieved in implementing numerous public welfare schemes has been possible largely due to the invaluable contribution of our employees," he added.
Mann thanked employees for their dedicated service and highlighted the government's recruitment initiatives.
"Our government has undertaken the largest-ever recruitment drive in government departments over the past four years and nine months. We have provided 71,777 government jobs to our youth purely on merit, without any bribery or recommendation," he said.
"I have always preferred dialogue to address the pending demands of employees, and our doors remain open to them at all times," he added.
Mann said the announcement would bring particular joy to nearly 8 lakh employees and pensioners across Punjab.
"It is a particularly joyful day for nearly 8 lakh employees and pensioners of Punjab. As a Diwali gift, they are getting an additional 3 per cent increase in Dearness Allowance (DA) for government employees and Dearness Relief (DR) for pensioners," he said.
He said his government had consistently increased DA since assuming office in 2022.
"From 2022 till date, the state government has increased DA by 25 percentage points. Just two months ago, in September, an 8 per cent increase in DA was announced. This is the first time that any government has increased DA by 11 percentage points within a span of just two months," he said.
"The cumulative increase of 11 percentage points will benefit employees and pensioners by Rs 1,813 crore during the current financial year," he added.
Mann said that when the state government assumed office in 2022, a substantial financial liability relating to the Sixth Punjab Pay Commission was already pending.
"The benefits of the Sixth Punjab Pay Commission were supposed to be implemented with effect from January 1, 2016, but its recommendations were implemented only in July 2021. Consequently, arrears amounting to approximately Rs 14,191 crore had accumulated for the period from January 1, 2016, to June 30, 2021," he said.
He claimed that his government had systematically addressed this long-pending financial liability and prepared a phased payment plan to clear the outstanding arrears of Rs 14,191 crore.
"We gave priority to pensioners, and their arrears were released on April 1, 2025. The arrears of serving government employees have started being released from April 1, 2026," he said.
"So far, arrears amounting to Rs 4,891 crore have been released, and the remaining Rs 9,300 crore will also be paid," Mann added.