The increase will benefit around 8 lakh people and will be credited with November salaries, according to Moneycontrol and The Indian Express.
Punjab Chief Minister Bhagwant Mann announced a 3 per cent dearness allowance (DA) hike for state government employees and pensioners on Wednesday. According to reports from Moneycontrol and The Indian Express, the move is intended as a Diwali gift for approximately 8 lakh beneficiaries.
The new rate will bring the total DA to 53 per cent. Mann stated that the government has provided a total DA increase of 11 per cent within this year. The latest instalment will be included in the November salary payments.
The Indian Express reported that this decision will result in a fiscal cost of about Rs 380 crore for the rest of the current financial year. From April 2027, the annual cost is expected to reach around Rs 1,000 crore. The total annual financial liability for the increases announced this year is estimated at Rs 3,988 crore.
This announcement comes as the state's 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 these unpaid arrears is currently before the Punjab and Haryana High Court.
Addressing the media, Mann noted that his government has provided 71,777 government jobs on a merit basis. He added that the government remains open to discussing the demands of employees at any time.
