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Punjab govt offers DA equal to central rates, prepares Rs 14,191 crore liquidation plan
✍️ Amar Ujala · Punjab
🗓 03 Sep 2026, 09:32 PM
👁 15
The Punjab administration has drafted a liquidation plan to clear about Rs 14,191 crore of pending dearness allowance and dearness relief under the Sixth Pay Commission, matching central government rates.
Punjab's finance department announced a comprehensive liquidation scheme aimed at settling the long‑standing arrears of dearness allowance (DA) and dearness relief (DR) for government employees and pensioners. The plan targets roughly Rs 14,191 crore that remain unpaid under the Sixth Pay Commission recommendations.
According to the proposal, the state will align its DA rates with those fixed by the central government, a move intended to address employee grievances and reduce litigation. The liquidation schedule outlines phased payments, with priority given to pensioners and senior staff.
State officials said the scheme has been vetted by the finance ministry and will be funded through a combination of budget reallocations and short‑term borrowing. They emphasized that the plan is a one‑time settlement and does not imply future regular increases beyond the central benchmark.
The announcement comes after prolonged negotiations with employee unions, which had staged protests demanding parity with central DA rates. While the government hopes the offer will end the standoff, union leaders have indicated they will evaluate the proposal before calling off further actions.
According to the proposal, the state will align its DA rates with those fixed by the central government, a move intended to address employee grievances and reduce litigation. The liquidation schedule outlines phased payments, with priority given to pensioners and senior staff.
State officials said the scheme has been vetted by the finance ministry and will be funded through a combination of budget reallocations and short‑term borrowing. They emphasized that the plan is a one‑time settlement and does not imply future regular increases beyond the central benchmark.
The announcement comes after prolonged negotiations with employee unions, which had staged protests demanding parity with central DA rates. While the government hopes the offer will end the standoff, union leaders have indicated they will evaluate the proposal before calling off further actions.