The Punjab government has recommended raising the Dearness Allowance (DA) of around 85,000 government employees recruited after July 17, 2020, from the existing 42 per cent to 60 per cent, in a move aimed at addressing pay disparities and easing growing employee unrest.
Industries Minister Aman Arora announced the decision on Friday after a Cabinet Sub-Committee constituted to examine employees’ grievances recommended the increase. The recommendation will now be sent to Chief Minister Bhagwant Mann for final approval.
The committee comprises Finance Minister Harpal Singh Cheema, Social Security Minister Dr Baljit Kaur and Arora.
Arora said the employees covered by the proposal were recruited under the Central Government pay structure after July 17, 2020. While their basic salaries are based on Central pay scales, they currently receive 42 per cent DA, compared with 60 per cent for Central Government employees.
The proposed increase would bring their DA on par with that of Central employees.
“While 71,000 employees recruited by the AAP government stand to benefit from this decision, another 14,000 recruited during the previous Congress regime will also be the beneficiaries,” Arora said.
He said the decision followed directions from Chief Minister Mann to address pay anomalies among different categories of employees. Arora also stressed that the government did not object to employees recruited before July 17, 2020, receiving higher salaries or other benefits under the earlier Punjab pay structure.
The government’s move comes amid mounting tensions with employee organisations over pending DA instalments and other service-related demands. Around 3.15 lakh employees recruited before July 2020 are still awaiting relief on their long-pending demands, particularly the release of outstanding DA dues.
The timing of the announcement is significant as employee organisations have announced another round of mass casual leave on September 8. Employees had earlier observed mass casual leave on August 27. The government subsequently directed departments to issue show-cause notices to employees who remained absent, triggering strong opposition from unions.
The All India State Government Employees Federation has warned of nationwide protests if the notices are not withdrawn by September 7.
The government has meanwhile been seeking to defuse the confrontation through negotiations. Cheema, Arora and Baljit Kaur had on Thursday conveyed the government’s willingness to hold talks with employees and pensioners to resolve their grievances.
The latest DA proposal could provide relief to a significant section of employees while potentially creating differences within the wider workforce, as pre-2020 employees continue to press for their own outstanding dues.
