The Bhagwant Mann-led Punjab government has decided to recommend increasing the Dearness Allowance (DA) from 42% to 60% for around 85,000 government employees recruited after July 17, 2020.
The decision is aimed at bringing the DA of these employees in line with the Central Government’s rate. The employees covered under the decision are those recruited under the post-2020 regime whose pay is based on the Central Government’s 7th Pay Commission pattern and has not been revised through court orders.
The recommendation was taken by a three-member Cabinet Sub-Committee comprising Finance Minister Harpal Singh Cheema, Industries and Commerce Minister Aman Arora, and Social Security Minister Dr Baljit Kaur. The recommendation will now be sent to Chief
Minister Bhagwant Singh Mann for final approval.
Why Punjab Employees Were Getting Different DA Rates
The issue stems from a change in the pay structure for fresh recruits. In December 2020, the Punjab Cabinet approved bringing the pay scales and matrix for fresh recruitments and appointments made after July 17, 2020, at par with the Central Government’s 7th Pay Commission scales.
This resulted in two broad categories of employees. Those recruited before July 17, 2020 continued under Punjab’s historically higher state pay structure, while employees recruited after that date were placed under the Central Government’s 7th CPC pay pattern.
However, while the post-2020 recruits were brought under the Central pay scale pattern, they continued to receive DA at 42%.
Aman Arora: Employees Are Backbone Of Good Governance
Announcing the decision at a press conference at Punjab Bhawan, Industries and Commerce Minister and AAP Punjab President Aman Arora said the government had always stood for the rights and dignity of its employees.
“Employees are the backbone of good governance. The Bhagwant Mann government has always stood for the rights and dignity of every employee. Today, on the auspicious occasion of Janmashtami, we are fulfilling another promise by ensuring that our post-2020 recruits get the DA they truly deserve,” Arora said.
He said employees recruited before July 17, 2020 continue to benefit from Punjab’s higher basic pay structure, while post-2020 recruits do not enjoy the same historically higher Punjab entry pay scales.
Govt Says Lower DA Is Significant For Post-2020 Recruits
According to the government, Punjab has historically followed pay scales substantially higher than those of the Central Government, with employees in several major cadres receiving 30% to 70% higher pay under Punjab-specific pay scales.
However, the government said the situation is different for employees recruited under the post-2020 pay structure as they do not receive those higher Punjab entry pay scales.
Aman Arora said the argument that a lower DA is offset by a substantially higher basic pay is therefore less applicable to this category of employees.
Govt Says It Wants Pay Parity With Central Counterparts
Aman Arora said the AAP government, under Chief Minister Bhagwant Singh Mann, has maintained that no Punjab Government employee should take home less salary than their Central Government counterpart.
He said the government has undertaken large-scale recruitment in recent years and provided employment opportunities to the state’s youth.
“Our government has made it clear that employees of Punjab should not be disadvantaged in comparison with their Central Government counterparts. The increase in DA for post-2020 employees is a step towards addressing that disparity,” Arora said.
Govt’s Stand Was Also Presented Before Courts
The AAP Punjab president said the Punjab Government had placed its position on the DA of post-2020 employees before the Punjab and Haryana High Court and subsequently before the Supreme Court in the Special Leave Petition filed by the state.
He added that the issue was also reiterated publicly by Cabinet Ministers during a press conference on September 3, 2026.
Aman Arora Targets Congress, BJP Over Pay Parity
Taking a dig at the Opposition, Arora challenged the Congress and BJP over their demand for pay parity for Punjab Government employees under Article 14 of the Constitution.
“If they truly believe in Article 14, let them first ask their own state governments to bring their employees’ pay and allowances at par with the Central Government before preaching to Punjab,” he said.
85,000 Employees To Benefit If Approved
The government said around 85,000 employees fall under the post-2020 category covered by the recommendation. These include teachers, constables, clerks, nurses, health workers, medical officers, patwaris and junior engineers, among other categories.
The stated category-wise numbers include:
•20,603 teachers
•11,685 constables
•5,144 clerks
•2,355 nurses
•2,267 peons
•1,467 Multi-Purpose Health Workers
•1,248 Medical Officers (General)
•1,214 patwaris
•1,129 Junior Engineers
The proposed increase will raise the DA for eligible post-2020 employees from 42% to 60%, subject to final approval by Chief Minister Bhagwant Singh Mann.
