Punjab Chief Minister Raises Dearness Allowance to 53 Percent
Bhagwant Singh Mann announced a 3% Dearness Allowance increase for 8 lakh Punjab government employees and pensioners as a Diwali gift.
Punjab Chief Minister Bhagwant Singh Mann announced a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for approximately 8 lakh government employees and pensioners on November 5, 2026. The hike, described as a Diwali gift, raises the total DA rate from 50% to 53% and is effective as of November 1. Payments will be reflected in December salaries and pensions.
This measure marks the third increase in two months, totaling an 11 percentage-point rise since September. The government estimates the 3% hike will result in an additional expenditure of Rs 330 crore, while the cumulative 11 percentage-point increase represents a total financial outgo of Rs 3,988 crore. The decision follows pressure from employee unions that had threatened a dharna on November 13 over pending installments.
During the announcement, Mann highlighted the state's progress in clearing Rs 14,191 crore in arrears from the Sixth Punjab Pay Commission, noting that Rs 4,891 crore has already been released. He also criticized the activity of central investigating agencies in the state, suggesting that raids by the Enforcement Directorate signal the approach of elections.
