Punjab govt hikes DA by 8 per cent; check new Dearness Allowance rates

The Punjab Government announced an 8 per cent hike in Dearness Allowance (DA) for its employees on Wednesday, increasing the existing rate from 42 per cent to 50 per cent with effect from September 1, 2026.

"I am directed to refer to this Department's letter No. FD-FP-10DA/3/2024-1FP1/100 dated 30.10.2024 and to convey that the Governor of Punjab is pleased to release dearness allowance @8% to all the employees of Government of Punjab, thereby increasing the existing rate from 42% to 50% w.e.f. 01.09.2026 i.e. payable with salary of September, 2026," the State Department of Finance said in a notification.

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Earlier on Tuesday, the state government noted that it is fully committed to the welfare of employees and pensioners and also said the matter concerning pending DA and dearness relief (DR) is already before the Supreme Court and its decision will be binding on all parties.

In a statement on Tuesday, the government said, "This matter is sub judice before the Supreme Court. All concerned should respect the judicial process and await the decision of the Apex Court. Whatever decision is passed by the Supreme Court will be binding on all parties."

Despite this, CM Bhagwant Mann has taken a proactive step for the welfare of employees and pensioners by announcing an eight per cent increase in DA, taking the total DA rate to 50 per cent, with an annual financial outlay of Rs 3,000 crore, it added.