Punjab Govt any day ready to give salary plus DA at par with Central Govt employees: Harpal Cheema; Watch Video
Punjab Spends 51% Of Revenue On Salaries And Pensions, Highest Among Major States Against 38% National Average: Harpal Singh Cheema
*Bhagwant Mann Govt Has Increased DA By 14% In 3 Increments, From 28% In 2021 To 42% In 2024: Harpal Singh Cheema*
Babushahi Bureau
Chandigarh, September 3, 2026: Punjab Government will ensure salary parity plus DA (Dearness Allowance), with Central Government employees if that is what employees seek, Finance Minister Harpal Singh Cheema said on Thursday, making it clear that the state is ready to match the overall compensation package rather than simply replicate the Centre’s DA percentage.
The Punjab Group of Ministers, comprising Finance Minister Harpal Singh Cheema, Industries and Commerce Minister Aman Arora and Social Security Minister Dr. Baljit Kaur, said Punjab employees in several major categories already draw higher take-home salaries than their Central Government counterparts despite the Centre’s higher DA rate.
The ministers said Punjab’s existing pay structure has to be viewed alongside the state’s substantial salary and pension burden, with 51% of its revenue receipts spent on salaries and pensions against the 38% all-India average.
They also highlighted that the Bhagwant Singh Mann government has raised DA by 14% points and already paid over ₹4,500 crore towards the more than ₹14,000-crore arrears liability inherited from previous governments.
Bhagwant Mann Govt Presents Six Key Facts On Punjab Employees’ Salary & DA
1. *Punjab Employees Among Highest Paid In India*
Punjab government employees are among the highest paid in the country, with the state’s higher basic-pay structure resulting in higher take-home salaries in several major categories compared with their Central Government counterparts.
2. *51% Of Revenue Goes To Salaries And Pensions*
Punjab spends 51% of its revenue receipts on salaries and pensions, the highest among major states, compared with the all-India average of 38%.
3. *DA Increased By 14% In Three Increments*
The Bhagwant Mann Govt government has increased DA from 28% in November 2021 to 42% in November 2024, through three increments, taking the rate to 34% in October 2022, 38% in December 2023 and 42% in November 2024.
4. *₹14,100 Crore DA Arrears Liability Inherited*
The approximately ₹14,100 crore liability for DA arrears relates to the 2016-21 period and was inherited from previous Congress and SAD-BJP governments, according to the factsheet.
5. *Over ₹4,500 Crore Inherited Arrears Already Paid*
The Bhagwant Mann government has committed to clearing the inherited DA arrears and has already paid over ₹4,500 crore towards the liability to employees and pensioners.
6. *60% DA Would Add ₹6,500 Crore Annual Burden*
Raising Punjab’s DA to 60% would impose an additional annual burden of around ₹6,500 crore on the state exchequer, requiring it to be weighed against spending on essential public services.
Addressing a press conference, Finance Minister Harpal Singh Cheema said Punjab’s expenditure on salaries and pensions places the state at the highest level among major states. “While the national average for state expenditure on salaries and pensions is around 38%, Punjab spends 51% of its revenue directly on salaries and pensions. This reflects the substantial financial commitment being made by the state towards its employees and pensioners,” he said. The comparative figures presented by the government show Punjab’s salaries and pension expenditure at ₹57,177.9 crore against revenue receipts of ₹1,11,740 crore in FY 2025-26 Budget Estimates.
The Finance Minister said that comparing basic pay and DA together makes it clear that Punjab employees already receive higher take-home salaries in several major categories than their Central Government counterparts. “Punjab outpaces states like Haryana, Rajasthan, Uttar Pradesh, Bihar, Madhya Pradesh and Gujarat when the overall take-home salary is compared. The comparison shows that employees in Punjab are already receiving substantially higher salaries in several categories,” he said.
He pointed out the state government had also inherited a substantial liability relating to DA arrears. “The present government inherited a massive liability of over ₹14,000 crore relating to the period from 2016 to 2021 from the previous Akali-BJP and Congress governments. The present government is the only government to have committed to clearing the inherited arrears. The Bhagwant Mann government has not denied this liability. Instead, it formulated a liquidation plan and has already disbursed more than ₹4,500 crore in pending arrears to employees and pensioners through monthly installments,” he said.
Minister Harpal Singh Cheema further said that the Bhagwant Mann government had increased DA by 14% points in three increments. “The DA has already been increased by the present government from 28% to 42% in three increments: 34% in October 2022, 38% in December 2023 and 42% in November 2024, up from 28% in November 2021, despite the state’s considerable fiscal pressures,” he said.
Meanwhile, Information and Public Relations Minister Aman Arora said that the demand for a mechanical increase of DA to 60% must be considered in the context of Punjab’s overall fiscal position. “Increasing the DA to 60% would place an additional annual burden of around ₹6,500 crore on the state exchequer. This financial reality has to be balanced against the state’s responsibility to fund schools, hospitals, infrastructure and other essential services for the three crore people of Punjab,” he said.
He said the government had demonstrated its commitment to employment and employee welfare through concrete measures. “The Bhagwant Mann government has provided 70,900 jobs purely on merit. We have also completely eliminated the exploitative outsourced hiring model and initiated the process of transitioning 65,000 personnel to contracts. These steps demonstrate that our government stands firmly with employees and workers,” he said.
Minister Aman Arora appealed to employee unions to engage with the government through dialogue rather than confrontation. “Employees are the backbone of good governance. We appeal to the unions to recognise the political opportunism of opposition parties, which made promises before elections without making corresponding financial provisions. We are ready to resolve outstanding issues across the table with CM Bhagwant Singh Mann so that the interests of employees are protected without placing an unbearable burden on the people of Punjab,” he said.
The Group of Ministers said that the issue must be viewed in its entirety rather than through the single parameter of the DA percentage. The presentation made during the press conference established that Punjab spends 51% of its revenue receipts on salaries and pensions, compared with 38% for the all-India average among major states. It also showed that Punjab employees in several major categories already draw higher take-home salaries than Central Government employees despite Punjab’s current DA rate being 42% against the Central rate of 60%.
The ministers further said that the government has already increased DA by 14% points since 2021 and has committed to clearing the inherited DA arrears. “Our objective is not to deny employees their rightful dues. Our approach is to ensure that employee welfare, financial sustainability and the interests of the people of Punjab are protected together,” the Group of Ministers said.
Clarifying the legal and statutory position, Social Security Minister Dr. Baljit Kaur said the state’s position is based on the Punjab Civil Services (Revised Pay) Rules, 2021. “The salaries and DA of Punjab government employees are governed by the Punjab Civil Services (Revised Pay) Rules, 2021, which were framed under Article 309 of the Constitution. These Rules do not prescribe any fixed DA percentage or an automatic formula requiring Punjab to match the Central Government’s DA rate,” she said.
She said Punjab has the constitutional and statutory authority to determine the service conditions of its own employees. “Punjab retains the constitutional and statutory authority to determine the compensation of its employees according to its own financial circumstances. There is no legal provision that automatically requires every state to replicate the Central Government’s DA rate. The state must balance employee welfare with the financial resources available to provide public services,” she said.