5 November 2026 Punjab Khabarnama Bureau : Punjab Chief Minister Bhagwant Mann has announced a 3 per cent increase in Dearness Allowance (DA) for state government employees and pensioners, providing financial relief to approximately 7.5 lakh beneficiaries ahead of Diwali. The announcement was made on November 4, 2026, during a press conference in Chandigarh. With this latest revision, the DA rate for Punjab government employees and pensioners will increase from 50 per cent to 53 per cent of their basic pay.
According to the Chief Minister, the enhanced DA will be paid along with the November salaries and pensions in December. The decision is expected to benefit around four lakh government employees and 3.5 lakh pensioners across the state.
Mann described the announcement as a Diwali gift for government employees and pensioners, acknowledging their contribution to the functioning of the state administration and delivery of public services.
DA Increased from 50% to 53%
The latest announcement will raise the Dearness Allowance rate by three percentage points. Government employees and pensioners were previously receiving DA and Dearness Relief (DR) at the rate of 50 per cent.
Following the revision, the rate will increase to 53 per cent, bringing additional financial benefits to employees and retired government personnel. The revised allowance will be calculated on the basis of basic pay or pension.
The Chief Minister said that when the Aam Aadmi Party government assumed office in March 2022, the DA rate for employees stood at 28 per cent. Since then, the state government has gradually increased the allowance to 53 per cent.
He also highlighted that the government had announced an eight-percentage-point increase in September, followed by the latest three-percentage-point hike in November.
Around 7.5 Lakh Employees and Pensioners to Benefit
The decision will directly benefit approximately 7.5 lakh people, including four lakh serving government employees and 3.5 lakh pensioners.
The additional allowance is expected to increase the monthly income of serving employees and pensioners, helping them manage household expenses amid rising costs of essential goods and services.
According to reports, the latest DA increase will put an additional financial burden on the state government. The Tribune reported that the hike would entail an additional expenditure of approximately Rs 330 crore.
The government has indicated that the revised allowance will be reflected in the December payment cycle, covering November salaries and pensions.
Government Announces 11% DA Increase in Two Months
During the press conference, Bhagwant Mann also highlighted the successive increases in Dearness Allowance announced over the past two months.
In September, the Punjab government announced an eight-percentage-point increase, taking the DA rate from 42 per cent to 50 per cent. The latest three-percentage-point increase will take it further to 53 per cent.
Together, these two revisions represent an 11-percentage-point increase in the DA rate.
Mann said that the government had taken steps to improve the financial benefits available to employees and pensioners. He also stated that the administration remained open to discussions with employee organisations regarding their pending demands.
The Chief Minister emphasised that government employees play an important role in implementing public welfare programmes, maintaining administrative services and addressing the grievances of citizens.
DA Arrears Remain a Major Issue
Despite the latest announcement, the issue of pending DA and DR arrears continues to remain a major concern for Punjab government employees and pensioners.
According to a report published by The Indian Express, the outstanding DA and DR arrears payable to employees and pensioners had reached approximately Rs 22,818 crore for the period between January 1, 2021, and September 30, 2026.
Employee unions have repeatedly demanded the release of pending instalments and clearance of accumulated arrears. The issue has also reached the Punjab and Haryana High Court.
On November 3, the High Court issued a contempt notice to Punjab Chief Secretary K.A.P. Sinha and sought a response by November 17 over the government’s position on the pending dues.
The September DA revision and the latest announcement have provided an increase in the allowance rate, but the accumulated arrears remain a separate issue.
Employee Unions Had Announced Statewide Protest
The latest decision comes amid growing dissatisfaction among government employees over delayed DA payments and other service-related demands.
Employee organisations have been demanding the release of pending DA instalments, implementation of the Old Pension Scheme (OPS) and settlement of other outstanding financial benefits.
Employee unions have also announced plans to organise a dharna from November 13 if their demands are not addressed.
The government has maintained that it is willing to hold discussions with employee representatives to resolve their concerns. Mann reiterated that employees could approach the government to discuss their demands.
Punjab Government Highlights Recruitment Figures
During the press conference, the Chief Minister also highlighted the government’s recruitment record. He stated that the Punjab government had provided 71,777 government jobs since taking office.
Mann said the appointments had been made on merit and without bribery or political recommendations. He also indicated that approximately 600 additional appointments would be made shortly.
The Chief Minister reiterated that government employees and pensioners were an important part of the state’s administrative system and that their welfare remained an important consideration.
With the latest 3 per cent DA hike, approximately 7.5 lakh employees and pensioners are expected to receive increased monthly benefits. However, employee organisations are continuing to seek a resolution to the long-pending arrears issue, which remains a significant financial and legal matter for the Punjab government.
The revised DA rate of 53 per cent is scheduled to be reflected in November salaries and pensions, which will be disbursed in December.