DA in Punjab Increased by 3%; Government Faces High Court Scrutiny Over ₹22,818 Crore in Arrears.

In Punjab, the Dearness Allowance (DA) has been increased by 3 percent, bringing it to 53 percent. This will be paid out alongside the December salary; however, old DA/DR arrears amounting to ₹22,818 crore remain unpaid, a matter currently under litigation in the High Court.

Are you a government employee in Punjab? If so, this information is particularly relevant to you. The government has announced a 3 percent hike in the Dearness Allowance for its employees—a move timed just before Diwali. With this increase, the DA has risen from 50 percent to 53 percent. These new rates will be effective from November 1, 2026, and the payment will be disbursed along with the December salary.

Crucially, however, the payment of past arrears remains pending. DA/DR arrears owed to employees and pensioners total approximately ₹22,818 crore, and the issue has now reached the High Court.

Old Arrears of ₹22,818 Crore

It is significant that despite the hike in the Dearness Allowance, the long-standing demands of the employees remain unaddressed. According to a report submitted by the Punjab government to the High Court, the accumulated DA/DR arrears for employees and pensioners from July 1, 2021, to September 30, 2026, have reached approximately ₹22,818 crore.

Furthermore, when other outstanding dues are included, the government's total liability is estimated at approximately ₹32,418 crore. Notably, in August 2026, the Punjab and Haryana High Court directed the government and the Punjab State Power Corporation Limited (PSPCL) to clear the DA/DR arrears within 15 days. The Court further stipulated that any delay in payment would necessitate the government to pay 6 percent annual interest on the outstanding amount.

What happened next?

It should be noted that the government failed to disburse the funds within the stipulated time, following which the High Court issued a notice to the Chief Secretary of Punjab on November 3.

Court seeks a response

After issuing the notice, the Court sought a response from the Chief Secretary of Punjab and directed him to appear before the Court on November 17. On November 5, the Supreme Court granted relief to the Punjab government and the Chief Secretary by staying the proceedings initiated against the Chief Secretary.

Plan for clearing arrears sought

Significantly, the Court has now asked the government to submit a plan for the payment of arrears. The government is required to specify the amount it can disburse by March 31, 2027. Undoubtedly, the increase in the dearness allowance will provide substantial relief to the employees. In these times of high inflation, the additional funds will enable them to better manage their own expenses as well as those of their families. The next hearing in this matter is scheduled for next month, on December 1, 2026.