CHANDIGARH: Punjab Government will ensure salary parity plus DA (Dearness Allowance), with Central Government employees if that is what employees seek, Finance Minister Harpal Singh Cheema said on Thursday, making it clear that the state is ready to match the overall compensation package rather than simply replicate the Centre’s DA percentage.

The ministers said Punjab’s existing pay structure has to be viewed alongside the state’s substantial salary and pension burden, with 51% of its revenue receipts spent on salaries and pensions against the 38% all-India average.
Bhagwant Mann Govt Presents Six Key Facts On Punjab Employees’ Salary & DA
1. Punjab Employees Among Highest Paid In India
Punjab government employees are among the highest paid in the country, with the state’s higher basic-pay structure resulting in higher take-home salaries in several major categories compared with their Central Government counterparts.
2. 51% Of Revenue Goes To Salaries And Pensions
Punjab spends 51% of its revenue receipts on salaries and pensions, the highest among major states, compared with the all-India average of 38%.
3. DA Increased By 14% In Three Increments
The Bhagwant Mann Govt government has increased DA from 28% in November 2021 to 42% in November 2024, through three increments, taking the rate to 34% in October 2022, 38% in December 2023 and 42% in November 2024.
4. ₹14,100 Crore DA Arrears Liability Inherited
The approximately ₹14,100 crore liability for DA arrears relates to the 2016-21 period and was inherited from previous Congress and SAD-BJP governments, according to the factsheet.
5. Over ₹4,500 Crore Inherited Arrears Already Paid
The Bhagwant Mann government has committed to clearing the inherited DA arrears and has already paid over ₹4,500 crore towards the liability to employees and pensioners.
6. 60% DA Would Add ₹6,500 Crore Annual Burden
Raising Punjab’s DA to 60% would impose an additional annual burden of around ₹6,500 crore on the state exchequer, requiring it to be weighed against spending on essential public services.
Minister Aman Arora appealed to employee unions to engage with the government through dialogue rather than confrontation. “Employees are the backbone of good governance. We appeal to the unions to recognise the political opportunism of opposition parties, which made promises before elections without making corresponding financial provisions. We are ready to resolve outstanding issues across the table with CM Bhagwant Singh Mann so that the interests of employees are protected without placing an unbearable burden on the people of Punjab,” he said.