Chandigarh: Punjab govt has formally notified an 8% increase in dearness allowance (DA) for state govt employees, raising the existing rate to 50%.




According to the official notification issued by the department of finance on Wednesday, the enhanced allowance is effective from Sept 1, 2026, and will be payable along with the salary for this month.




A separate notification has also been issued to extend the same 8% increase — raising it from 42% to 50% — as dearness relief (DR) for pensioners and family pensioners.




The decision follows a meeting between chief minister Bhagwant Mann and representatives of employee unions on Sept 18, wherein employees raised their issues, including the demand for release of pending DA.




According to the chief minister’s office (CMO), the enhanced allowance is intended to provide financial support to eight lakh govt employees and pensioners amid rising costs of essential commodities. The CMO stated that the administration remains committed to maintaining a continuous dialogue with employee unions to address their concerns through constructive engagement.




The notification comes a day after the high court directed Punjab chief secretary to remain personally present before it after taking note of the state’s prima facie failure to comply with its earlier orders on payment of pending DA.




Earlier, on Aug 3, the Punjab and Haryana high court directed the state govt to release all pending DA/DR instalments to employees and pensioners within a fortnight, while barring the state from engaging in unproductive expenditures (such as large-scale advertising) until dues were cleared.




It was followed by the Punjab govt filing a Special Leave Petition (SLP) in the Supreme Court on Sept 1 challenging the high court’s directive, citing financial constraints and the inability to instantly disburse massive arrears.