Punjab government employees have historically received salaries substantially higher than their central government counterparts, with several cadres drawing 30 per cent to 70 per cent higher salaries under the state's pay structure, an official statement said on Monday. Despite providing Dearness Allowance (DA) at 42 per cent, compared to the central government's 60 per cent, the Punjab government employees in many categories continue to receive higher aggregate monthly salaries because of the state's higher pay scales, it said. The statement came after the Punjab and Haryana High Court on Monday directed the state government to clear pending DA of employees and pensioners within a fortnight.
The judgment was pronounced after the court had reserved its verdict on July 22. A bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor had conducted around a dozen hearings on the matter over the past month before reserving its decision. According to reports, the High Court has also stayed the Punjab government’s expenditure on advertisements outside the state, on promotional schemes, along with certain other non-essential expenditures.
VIDEO | Chandigarh: On Punjab and Haryana High Court direction to the Punjab government to release Dearness Allowance (DA) and pending arrears to Punjab government employees and pensioners by the end of this month, Advocate Sunny Singla says. "The Punjab government has around 3.5… pic.twitter.com/tMaoOSSXw7
— Press Trust of India (@PTI_News) August 3, 2026
The Punjab government, however, argued that implementing the order would impose an immediate and substantial financial burden on the state. It contended that the directions, if enforced, would disrupt fiscal planning and have wide-ranging administrative and financial consequences.An official spokesman in a statement said, "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. 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".
Newsinc24 Team





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