News for State Government Employees: If you are a government employee, this news could be significant for you. The Punjab government is set to raise the Dearness Allowance (DA) for about 85,000 government employees recruited after July 17 by 18 per cent, bringing it to 60 per cent. Cabinet Minister Aman Arora shared this information last week. Arora said the cabinet sub-committee formed to address employee-related issues recommended this move.

DA to Rise from 42% to 60%

The Cabinet Minister announced that the three-member cabinet sub-committee has decided to increase the DA for these employees from 42 per cent to 60 per cent. Arora mentioned that the committee’s recommendation would be forwarded to the Chief Minister.

However, he clarified that employees recruited prior to July 2020 would not benefit from this hike. Central government employees currently receive a DA of 62 per cent. The central government had previously raised the DA by 2 per cent, and central employees are currently demanding a hike to 65 per cent.

These Employees Receiving Lower Pay
This announcement is crucial because employees recruited after July 17, 2020, were receiving a salary equivalent to central government employees, plus a 42 per cent DA. This amount was lower than the salaries of employees recruited before July 2020, whose pay is determined by the Punjab Pay Commission. Arora noted that Punjab has two salary structures, creating confusion and conflicts of interest. He explained that these include the original Punjab pay scale and a pay scale equivalent to the central government’s.

30% to 70% Higher Than Base Salary
Arora further explained that these salaries exceed the Punjab base salary and are 30 to 70 per cent higher than the central government’s base salary. When the 42 per cent DA is added, the total salary becomes significantly higher than that of central government employees.

He stated that when a comparative calculation is made, the salary—and the take-home pay—of Punjab employees remains higher, even after adding 60% Dearness Allowance (DA) to the central government’s basic salary. It is worth noting that 85,000 employees have been recruited over the past six years.