Punjab CM announces 3 per cent DA hike for employees and pensioners
The increase will benefit 8 lakh people and brings the total dearness allowance rate to 53 per cent.
Punjab Chief Minister Bhagwant Mann on Wednesday announced an additional 3 per cent dearness allowance (DA) for state government employees and pensioners. According to The Indian Express, the move is intended as a Diwali gift for approximately 8 lakh beneficiaries.
The latest hike will bring the total DA rate to 53 per cent, up from the previous 50 per cent. Mann stated that the government has increased the DA by 11 per cent within a two-month period, following an 8 per cent increase announced in September.
The Chief Minister said the decision would provide an annual financial benefit of approximately Rs 3,988 crore. The enhanced amount is expected to be credited with November salaries.
This announcement comes as the state faces significant financial obligations. A report presented to the Punjab and Haryana High Court by Chief Secretary K A P Sinha noted that outstanding DA and dearness relief (DR) arrears for the period between January 1, 2021, and September 30, 2026, have reached Rs 22,818 crore.
The issue of unpaid arrears is currently before the Punjab and Haryana High Court. On Tuesday, the court issued a contempt notice to the chief secretary and requested a response by November 17.