Punjab owes Rs 22,818 crore in employee DA, HC told
Chief Secretary K.A.P. Sinha has informed the High Court that the state government has to pay Rs 22,818 crore as dearness allowance to employees and pensioners.
The state government is yet to pay Rs 22,818 crore as dearness allowance and relief to its employees and pensioners. Chief Secretary K.A.P. Sinha gave this information while recording his statement before the Punjab and Haryana High Court.
According to the details presented in court, the government's total dues towards the staff and retired people stand at Rs 32,418 crore. The High Court had directed on August 3 that the government should also pay annual interest at the rate of 6 percent on this unpaid amount.
The Supreme Court has not stayed this decision of the higher court, making it mandatory for the administration to follow these instructions. The case is scheduled for further hearing in the High Court tomorrow.
If the state government fixes the allowance at central rates, an additional annual expenditure of Rs 4,712 crore will be added to the exchequer. In the current financial year 2025-26, the government has already spent Rs 58,064 crore on salaries and pensions.
During a meeting chaired by the Chief Minister on September 18, an 8 percent hike in DA was approved. Following this, the finance branch issued an official order on September 23 raising the allowance from 42 percent to 50 percent. This new rate came into effect from September 1, 2026, and employees have already received this amount in the month of October.
Key developments
- Rs 22,818 crore in employee and pensioner DA yet to be paid
- Total liability stands at Rs 32,418 crore as per affidavit filed by Chief Secretary in High Court
- 6 percent annual interest to be paid on pending amount under court orders
- Next hearing of the case in High Court tomorrow
