Punjab Government Announces 3% DA Hike for Employees and Pensioners Ahead of Diwali

Around 8 lakh Punjab government employees and pensioners are to receive a higher Dearness Allowance (DA) following a 3-percentage point increase announced by the state government. The revision raises the DA rate from 50% to 53%, as per news reports. 

The revised amount will be paid with the November salary and pension, scheduled for disbursement in December 2026. Chief Minister Bhagwant Singh Mann announced the decision at a press conference in Chandigarh on November 4, 2026, ahead of Diwali. 

DA Revisions Announced This Year 

The latest increase brings the total DA revision announced by Punjab this year to 11 percentage points. The state government had previously approved two increases of 4 percentage points each, taking the rate from 42% to 50%. The latest 3 percentage point increase takes it to 53%. 

Mann said the DA rate had increased from 28% in 2022, when the Aam Aadmi Party government came to power, to its current level of 53%. 

The three revisions announced this year are expected to result in an annual financial liability of ₹3,988 crore for the state government. 

Punjab’s Pending DA Arrears 

The latest announcement comes against the backdrop of outstanding payments to government employees and pensioners. According to figures submitted by the state government to the Punjab and Haryana High Court, pending Dearness Allowance and Dearness Relief (DR) arrears amount to ₹22,818 crore. 

The total outstanding financial liability towards employees and pensioners, including other claims, is estimated at ₹32,418 crore. The government has calculated that matching the Centre's DA rates would add ₹4,712 crore to its annual expenditure. 

In addition, clearing the pending arrears would require payment of 6% annual interest. The matter is pending before the Punjab and Haryana High Court, which has sought a response from the state. Further proceedings are scheduled for November. 

Government Reports Appointments 

Mann also stated that 71,777 government jobs had been provided on a merit basis. He said the state government remained open to discussions on the demands raised by employees. 

Read More: Tamil Nadu, Rajasthan, Madhya Pradesh and Chhattisgarh Announce DA Hikes Ahead of Diwali 2026; Check Revised Rates! 

Conclusion 

With the latest revision, Punjab's DA rate has increased to 53%. However, outstanding DA and DR arrears remain a pending financial liability for the state. 

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