Punjab CM Bhagwant Mann announces 3% DA hike as Diwali gift for 8 lakh employees and pensioners

Punjab Chief Minister Bhagwant Singh Mann has announced a 3% increase in Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners as a special Diwali gift. With this revision, the DA rate has increased from 50% to 53%, benefiting nearly 8 lakh employees and pensioners across the state.

The enhanced DA/DR will come into effect from November 1, and the revised amount will be reflected in salaries and pensions paid in December. The Chief Minister said the latest announcement takes the total DA increase under his government to 25 percentage points since it came to power in 2022, when employees were receiving DA at just 28%.

Taking to X, Bhagwant Mann described the announcement as a major Diwali gift for government employees and pensioners. He said the additional 3% increase would provide an annual financial benefit of approximately ₹3,988 crore. He also reaffirmed the government's commitment to protecting employees' rights, welfare and overall well-being, extending Diwali greetings to them and their families.

Addressing a press conference, the Chief Minister praised the contribution of government employees and pensioners to the state's administrative system and public services. He described them as an integral part of the Punjab Government family and the backbone of its administrative machinery.

Mann highlighted that employees work with dedication to resolve public grievances, maintain law and order and ensure the effective implementation of various welfare schemes. He added that the government's achievements in delivering public welfare initiatives would not have been possible without their valuable contribution.

The Chief Minister also highlighted the government's recruitment record, stating that it had provided 71,777 government jobs to young people purely on merit over the past four years and nine months, without bribery or recommendations. He further emphasised that his government preferred dialogue to resolve employees' pending demands and that its doors remained open to them.

DA increased by 11 percentage points in two months

According to the Chief Minister, the latest 3% DA hike follows an 8% increase announced in September. Together, the two revisions have resulted in an 11-percentage-point increase within just two months.

Mann said this was the first time any government had raised DA by 11 percentage points over such a short period. The cumulative increase is expected to provide a financial benefit of Rs 1,813 crore to employees and pensioners during the current financial year.

He reiterated that his government had consistently worked to increase DA since taking office in 2022, raising the rate from 28% at that time to the current 53%.

Government working to clear Rs 14,191 crore in pay commission arrears

The Chief Minister also discussed the financial liabilities inherited by his government concerning the Sixth Punjab Pay Commission.

He explained that the commission's benefits were originally due from January 1, 2016, but its recommendations were implemented only in July 2021. As a result, arrears amounting to approximately Rs 14,191 crore had accumulated for the period between January 1, 2016, and June 30, 2021.

Mann said his government had developed a phased payment strategy to clear these long-pending dues, giving priority to pensioners and serving employees.

Under this plan, pensioners' arrears were released from April 1, 2025, while payments of arrears to serving government employees began on April 1, 2026.

So far, the state government has released Rs 4,891 crore towards the outstanding arrears. The remaining Rs 9,300 crore will also be paid, the Chief Minister assured.

Mann maintained that employee welfare remained a priority for his government, adding that financial constraints would not be used as an excuse to deny employees and pensioners their rightful benefits.