Punjab government employees and pensioners will receive dearness allowance and dearness relief at 50 per cent, following an eight percentage-point increase notified by the state government with effect from 1 September 2026.
The revised rate, up from 42 per cent, applies from 1 September and will be reflected in September salary and pension payments. Separate notifications have been issued for employees and pensioners. Around eight lakh people are expected to benefit from the decision.
The notification follows weeks of friction between the government and employee organisations over pending DA payments and other service-related demands. The increase was agreed after chief minister Bhagwant Mann met representatives of employee and pensioner organisations on 18 September.
The latest increase, however, does not settle the dispute over earlier DA and dearness relief arrears. Employee unions have questioned the absence of a timeline for clearing those dues.
The issue has also reached the courts. The Punjab and Haryana High Court had earlier directed the state to release pending DA and DR instalments, while the Punjab government subsequently challenged the direction before the Supreme Court.
For employees and pensioners, the immediate change is straightforward: DA and DR will be calculated at 50 per cent instead of 42 per cent from September. The question of earlier arrears remains unresolved.
