Punjab and Haryana HC Orders State to Release Pension, DA Arrears by April 30, 2026

The Punjab and Haryana High Court has directed the Punjab government to release all pending instalments of revised pension and dearness allowance (DA) arrears to pensioners by April 30. As per the news reports, the payments must also include interest at 6% per annum for delays. 

The order applies to pensioners of the state government as well as those from boards, corporations and other statutory bodies. The court clarified that the ruling will benefit all similarly placed pensioners in the state, including those who were not part of the petitions. 

Background of Pay Commission Implementation 

Punjab had constituted the Sixth Pay Commission on December 24, 2016, to review salaries and pensions of government employees and pensioners. The commission submitted its report on May 30, 2021. 

Following this, the state notified the Punjab Civil Services (Revised Pay) Rules, 2021 on July 5, 2021. The rules allowed payment of arrears for the period from January 1, 2016 to June 30, 2021. These provisions were later amended through a notification issued on September 20, 2021. 

However, despite the notification and a Cabinet-approved payment plan, the arrears had not been fully disbursed. 

Court Observes Delay in Implementing Cabinet Decisions 

Justice Harpreet Singh Brar noted that more than 4 years had passed since the rules were notified, yet the benefits had not been released in accordance with the approved schedule. 

The court observed that once the Council of Ministers approves a decision, the Rules of Business require the Chief Secretary to forward it to the concerned departments for implementation. 

Keeping Cabinet decisions pending for long periods, the court said, undermines the administrative process and delays benefits that have already been accepted in policy. 

Hardship Faced by Pensioners 

During the hearing, the court was informed that more than 35,000 pensioners had died since January 1, 2016 while awaiting the release of revised pension and DA arrears. 

The petitions were filed by retired employees receiving pensions from state boards and corporations, including Punjab State Power Corporation Limited. The state government did not dispute their entitlement to revised pension and DA arrears. 

DA Recognised as a Statutory Right 

The court stated that dearness allowance forms part of the remuneration structure of government employees and pensioners. It is meant to offset the impact of inflation and is linked to movements in the Consumer Price Index. 

Referring to earlier legal principles, the bench said DA is a legally enforceable right rather than a discretionary payment. The plea of financial constraints cannot be used to deny such payments once rules provide for them. 

Read More: Supreme Court Takes Up Plea Against EPF Rules for Foreign Nationals Working in India! 

Conclusion 

Allowing 5 connected petitions, the court directed the Chief Secretary to ensure release of all admissible dues to eligible pensioners. A compliance affidavit must be filed within 3 months of receiving the order. 

The court also ordered that all instalments due under the Cabinet’s payment schedule approved on February 13, 2025, up to February 28, 2025, be cleared by April 30 along with 6% interest on delayed payments and arrears of leave encashment payable till April 2026. 

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