As HC Orders Govt to Clear DA, Punjab Says Staff Already Get Higher Pay Than Central Employees
In its ruling in Punjab DA Case, the Punjab and Haryana High Court has held that the Punjab govt cannot deny DA/DR to employees and pensioners while paying full rates to IAS officers and ordered the state to clear DA within 15 days. Here are the 7 takeaways of the 76-page order.
North Desk Correspondent
Chandigarh, August 3
In a strongly worded judgment on August 3 in the Punjab DA Case, the Punjab and Haryana High Court has delivered a major blow to the Punjab Government and PSPCL.
The Court made it clear: once the government accepted the Central pattern of Dearness Allowance (DA) and Dearness Relief (DR), it cannot keep ordinary employees and pensioners waiting for years while IAS, IPS and IFS officers continue to get full Central rates from the same State treasury.
Background in simple words
Punjab DA Case: The dispute started after the 6th Punjab Pay Commission submitted its report in 2021. The Commission recommended that Dearness Allowance should continue on the same pattern as the Central Government. In June 2021, the Punjab Cabinet accepted this recommendation.
Over the next few years, the State released some DA instalments. However, later increases (especially those taking the rate beyond 42%) were not released. Meanwhile, All India Service officers posted in Punjab continued to receive full Central DA rates from the same State funds.
In February 2025, the government approved a “Liquidation Plan” to clear accumulated arrears of revised pay, pension and DA/DR (around ₹14,191 crore) over five years. Under this plan, pensioners below 75 years were to receive their arrears in as many as 42 small instalments, without any interest.
Employees and pensioners challenged this in the High Court. A Single Judge had earlier ruled in their favour in April 2026. The State and PSPCL appealed. On 3 August 2026, a Division Bench of Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor dismissed the appeals and gave clear directions.
ALSO READ: AAP Slams Centre Over Paper Leaks While Congress Demands Bains’ Resignation
Punjab DA Case: 7 Takeaways
1. Paying full DA to IAS officers but denying the same to Punjab employees is illegal
Punjab DA Case: The Court held that the State has been discriminating. All India Service officers serving in Punjab are getting DA at full Central rates. Ordinary government employees and pensioners are not. Both draw money from the same Consolidated Fund of the State. This difference has no justification and violates Article 14 of the Constitution.
2. Government had already accepted Central DA pattern – it cannot run away now
The 6th Punjab Pay Commission recommended that DA should continue on the Central Government pattern. The Council of Ministers accepted it in June 2021. The State itself implemented several instalments on that basis. Once accepted and acted upon, it becomes a right. The government cannot now say it will give only when it wants.
3. The plan to pay pensioners in 42 small instalments has been thrown out
The government’s “Liquidation Plan” wanted to pay arrears of revised pension and DA/DR over five years. Pensioners below 75 years were to get money in as many as 42 instalments – without any interest. The High Court called this arbitrary and discriminatory. All pensioners form one class. Age-based different treatment is not allowed.
4. All pending DA/DR must be released within 15 days
The Court has directed the Punjab Government and PSPCL to release “all pending instalments of DA and DR” to every employee and pensioner at the same rates currently being paid to IAS/IPS/IFS officers. The deadline is a fortnight.
5. Delay will attract 6% interest
If the government fails to pay within the given time, the unpaid amount will automatically carry simple interest at 6% per annum till the money is actually credited.
6. Chief Secretary has been made accountable
The Chief Secretary of Punjab has been ordered to ensure full compliance and file an affidavit in the High Court by 31 August 2026. Till the dues are cleared, the State has also been told not to waste money on large-scale advertising campaigns.
7. Relief is for everyone – not only those who went to court
The judgment applies to all similarly placed employees and pensioners of the Punjab Government and its corporations, including PSPCL. You do not need to have filed a case to get the benefit.
Bottom line for employees and pensioners:
The High Court has said in clear words that the government cannot keep transferring the burden of inflation onto the kitchen budgets of its own employees and pensioners while protecting the interests of a small group of All India Service officers.
The money that was being delayed and broken into tiny instalments now has to be paid – fully and soon.
Huge win for employees
This is a significant victory for lakhs of serving employees, retired employees and family pensioners across Punjab.
Meanwhile, employees and pensioners welcomed the decision in hope that the state government would soon clear the arrears.
Gurbax Singh, president of Pensioners Association, Financial Commissioner Secretariat, Punjab, said the employees and pensioners were grateful for the verdict which has delivered justice to them. He also congratulated the pensioners and employees who he said had been struggling for a long time.
Punjab Govt: Our employees get higher salaries than centre; Ready to Pay
Punjab Government has said that employees have historically received salaries substantially higher than their Central Government counterparts, with employees in several cadres drawing 30% to 70% higher pay under Punjab’s pay structure.
It said, “Despite providing Dearness Allowance (DA) at 42%, compared to the Central Government’s 60%, Punjab employees in many categories continue to receive higher aggregate monthly salaries because of the State’s higher pay scales.”
The Punjab Government has consistently maintained that it is willing to ensure that no employee receives less than the total emoluments payable under the Central Government pay scale together with the Central Government DA rate, it added. However, the State has maintained that the higher Central Government DA rate cannot be applied on top of Punjab’s already higher pay scales, as the two pay structures cannot be combined. The State has also maintained that fixation of Dearness Allowance is a sovereign policy decision of the State Government.
Here’s the comparison as claimed by Punjab govt:
* Clerk: Punjab ₹54,812 | Centre ₹36,960 | Punjab higher by ₹17,852
* Driver: Punjab ₹40,612 | Centre ₹36,960 | Punjab higher by ₹3,652
* Stenographer: Punjab ₹56,374 | Centre ₹47,360 | Punjab higher by ₹9,014
* ETT Teacher: Punjab ₹67,592 | Centre ₹65,760 | Punjab higher by ₹1,832
* Constable: Punjab ₹54,812 | Centre ₹36,960 | Punjab higher by ₹17,852
OUR RELATED STORIES:
Read ALSO: Govt Fixes Retirees’ Gratuity, Core Arrears Order Still Pending
ALSO: Punjab Opposes DA To Its Staff, Tells HC: The 2021 Promise Was Just An ‘Endeavour’
Punjab High Court Rejects its ‘No Money’ Plea, Orders Full DA Payment by June 30
Follow North Desk on WhatsApp for the latest from Punjab, Haryana and Himachal Pradesh: https://whatsapp.com/channel/0029Vb7ccdxJENy2H87DBG3E
One Comment