Punjab announces 4% hilke in Dearness Allowance for State Government Employees

In an impactful decision for Punjab's government employees, Chief Minister Bhagwant Mann revealed a significant 4% surge in dearness allowance (DA) effective December 1. This hike elevates the DA from 34% to 38%, marking a positive step for the state's workforce. The DA for the central government employees is currently 46%, with effect from July 1, 2023.

Mann, after a productive discussion with the Punjab State Ministerial Services Union (PSMSU) representatives, addressed the employees' concerns and declared this update as a New Year's gift for them. The meeting resulted in the confirmation of the immediate 4% DA increase, with assurance for the remaining 8% to follow suit.

PSMSU President Amrik Singh confirmed the assurance given by the Chief Minister regarding the pending 8% DA during the post-meeting session.

The decision, estimated to incur an annual cost of Rs 1,100 crore to the state treasury, directly impacts approximately 3.25 lakh employees and 3.50 lakh pensioners in Punjab.

However, the move faced criticism from the Punjab Employees and Pensioners Joint Front, labeling it an inadequate response to the employees' needs. Their statement emphasized the discrepancy between Punjab's 38% DA and the 46% received by counterparts in neighboring states and central government employees.

Despite the hike, the concerns persist, including unresolved issues like the reinstatement of benefits, the payment of minimum wages to honorary workers, and the restoration of various allowances, raising questions about the sufficiency of the decision.

Sukhchain Singh Khaira, president of the Punjab Government Employees’ Association, highlighted the demand for the pending 12% DA and the implementation of the old pension scheme. These demands, however, remain unaddressed by the government.

Addressing these concerns, Mann pledged to take up the matter of the old pension scheme with the Union government and organize discussions with the Secretary, Finance, Government of India, to advocate for the cause.