There has been a one-time hike of 8% in DA for employees of this state

The Punjab government has announced an 8 percent increase in Dearness Allowance (DA) for state government employees, which will provide a huge financial relief to lakhs of employees across the state. The Finance Department issued an official notification for this on Wednesday. With this new change, the rate of DA has increased to 50 percent from the existing 42 percent of basic pay. The increased allowance will be effective from September 1, 2026 and employees are expected to get this increased benefit with their September salary.

According to an order issued by the Finance Personnel-I Branch of the Finance Department, the hike has been approved to help cushion the impact of rising inflation for Punjab state government employees. Copies of this order have been sent to all Special Chief Secretaries, Additional Chief Secretaries, Financial Commissioners, Principal Secretaries, Administrative Secretaries, Heads of Departments, Divisional Commissioners, Deputy Commissioners and other concerned officers for implementation.

They will also get the benefit of DA

The Finance Department has also directed District Treasury Officers and Treasury Officers across the state to ensure that salaries are paid as per the revised DA rates. This decision will benefit regular employees working in various government departments and organizations across Punjab.

The Finance Department has also informed several state-run universities including Punjab Agricultural University, Ludhiana; Punjabi University, Patiala; Guru Nanak Dev University, Amritsar; Punjab University, Chandigarh; IK Gujral Punjab Technical University, Jalandhar; Guru Angad Dev Veterinary and Animal Sciences University, Ludhiana; Baba Farid University of Health Sciences, Faridkot; and Guru Ravidas Ayurveda University, Hoshiarpur.

Copies of notification to Accountant General (Audit), Punjab; Accountant General (A&E), Punjab; Punjab Bhavan, New Delhi; And it has also been forwarded to other relevant offices including Public Relations Department. The move is expected to provide immediate financial relief to government employees, as the revised DA portion will become part of their salary payments from this month itself.

Government statement on Tuesday

Earlier on Tuesday, the state government said it was fully committed to the welfare of employees and pensioners. The government also said that the pending DA and Dearness Relief (DR) matter is already in the Supreme Court and its decision will apply to all parties. In a statement issued on Tuesday, the government said the matter is pending before the Supreme Court. All concerned should respect the judicial process and await the decision of the Supreme Court. Whatever decision the Supreme Court gives will apply to all the parties. However, Chief Minister Bhagwant Ma has taken an important step for the welfare of employees and pensioners and announced an increase in DA by eight percent. Along with this, the total DA rate has gone up to 50 percent and will result in a financial burden of Rs 3,000 crore annually.