Chandigarh: The Punjab government has approached the Supreme Court challenging the Punjab and Haryana High Court’s August 3 order concerning the payment of Dearness Allowance (DA) and Dearness Relief (DR) arrears to state employees and pensioners.
In its Special Leave Petition (SLP), the state has argued that clearing nearly Rs 14,191 crore in arrears within the stipulated period is not financially or constitutionally feasible.
The government has sought a stay on the High Court’s order while asking the top court to allow it to continue with its previously approved phased payment plan.
Why Has Punjab Government Challenged The High Court Order?
According to the SLP filed through the state Finance Department, the government has contended that compliance with the High Court direction within such a short period would not merely be difficult but “constitutionally impossible”.
The state has relied on Article 266(3) of the Constitution, arguing that money cannot be withdrawn from the Consolidated Fund of the State except through the procedure prescribed under the Constitution.
The government has also maintained that the Punjab Civil Services (Revised Pay) Rules, 2021 do not make it mandatory for Punjab to pay DA at exactly the same rate or schedule as the Central Government.
According to the state, the rules do not prescribe any fixed index, formula or interval for revision of DA and leave such decisions within the government’s domain.
Punjab Seeks Stay On High Court Verdict
The Punjab government has requested the Supreme Court to set aside the August 3 judgment of the Punjab and Haryana High Court.
Until the matter is finally decided, the state has sought a stay on the operation and implementation of the High Court order, including any related enforcement or contempt proceedings.
It has also asked the apex court to permit payment of arrears according to the liquidation plan approved by the Punjab Cabinet in February 2025.
Under that plan, around Rs 14,191 crore in outstanding dues was to be cleared in phases over five financial years.
Punjab Govt Says Many Employees Already Earn More Than Central Counterparts
In its petition, the Punjab government has also compared salaries of state employees with those working under the Central Government.
The state has claimed that employees in five out of seven categories are already drawing higher salaries than their Central Government counterparts even with Punjab’s existing 42 per cent DA rate.
According to the government’s calculations, the monthly difference in these categories ranges from around Rs 1,832 to Rs 17,852.
The state cited the example of clerks and constables, saying Punjab’s basic pay in these cadres stands at around Rs 38,600, while the corresponding Central Government basic pay plus 60 per cent DA works out to around Rs 36,960.
However, the government acknowledged that employees in the superintendent and police inspector categories currently remain behind their Central Government counterparts, though it claimed future calculations would eventually put both categories in a surplus position.
Employees Intensify Protest Over Pending DA
The legal move comes amid continuing protests by Punjab government employees over pending DA and other demands.
Nearly four lakh employees had reportedly proceeded on mass leave on August 27, affecting several public services across the state.
Employee organisations have announced further protests, including district-level gatherings on September 6 and another statewide mass leave on September 8.
Protests outside ministers’ residences are also planned for September 12 and 13.
Employee bodies have further announced plans to organise a symbolic “Employees’ Assembly” in Chandigarh on September 30, where all 117 Punjab MLAs and 13 MPs are expected to be invited for a direct discussion on issues concerning employees and pensioners.
The Supreme Court will now examine the Punjab government’s challenge to the High Court order as the dispute over DA and arrears continues.
