Punjab govt says state employees earn up to 70 pc more than central staff despite lower DA benefits

04 August,2026 10:15 AM IST |  Chandigarh  |  mid-day online correspondent

The clarification comes a day after the Punjab and Haryana High Court directed the state government to clear the pending Dearness Allowance (DA) dues of employees and pensioners within two weeks

Punjab Chief Minister Bhagwant Mann. File Pic


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The Punjab government has stated that its employees have historically received significantly higher salaries than their counterparts in the central government, with several categories of staff earning between 30 per cent and 70 per cent more under the state's pay structure.

The clarification comes a day after the Punjab and Haryana High Court directed the state government to clear the pending Dearness Allowance (DA) dues of employees and pensioners within two weeks.

According to an official statement issued by the state government, while Punjab currently provides DA at 42 per cent compared to the central government's 60 per cent, employees in several cadres continue to receive higher overall monthly salaries because the state's basic pay scales are considerably higher.

State says salary comparison should consider entire pay structure

The Punjab government reiterated that salary comparisons should not be based solely on the DA percentage, as the overall pay structure differs from that of the central government.

According to the statement, the government has consistently maintained that no employee should receive less than the total emoluments payable under the corresponding central government pay scale, including the applicable central government DA.

However, it argued that the higher DA rate provided by the central government cannot simply be applied to Punjab's existing pay scales, as the two salary structures are based on different frameworks and cannot be combined.

The government also maintained that the determination of DA is a policy decision that falls within the jurisdiction of the state government.

Government cites rising salary and pension commitments

The state government said Punjab already carries one of the highest salary and pension burdens among major Indian states.

According to the statement, implementing the High Court's direction is expected to place an additional financial burden on the state exchequer, which could reduce the fiscal resources available for infrastructure projects, welfare schemes, and other developmental expenditure.

The government indicated that balancing employee welfare with overall fiscal management remains a key challenge while addressing the issue of pending DA payments.

Examples of salary differences across cadres

To support its position, the Punjab government cited salary comparisons between state and central government employees in similar roles.

According to the figures released by the state, a clerk employed by the Punjab government receives a total monthly salary of Rs 54,812, compared with Rs 36,960 for a clerk under the central government pay structure.

Similarly, a driver employed by the Punjab government receives Rs 40,612 per month, while the corresponding salary for a central government driver is Rs 36,960.

The government said these examples demonstrate that although Punjab employees receive a lower DA percentage than their central government counterparts, their overall monthly earnings remain higher due to the state's higher pay scales.

High Court order puts focus on DA dispute

The Punjab and Haryana High Court's recent direction has brought renewed attention to the long-standing dispute over pending DA payments to state government employees and pensioners.

(With inputs from PTI)

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