Pay Structure Disparity Punjab’s 7th Pay Commission brought post‑July 2020 recruits under the Central pay pattern, but their Dearness Allowance (DA) remained at 42%, unlike earlier staff who enjoy higher basic pay and a 60% DA. This created a two‑tier system: pre‑2020 employees benefited from Punjab’s historically higher pay scales, while newer hires faced lower DA despite a lower entry pay.
Cabinet Decision and Implementation Cabinet Minister Aman Arora announced that the DA for 85,000 government employees recruited after 17 July 2020 will be raised from 42% to 60%, bringing their benefits in line with the Central pay structure. The move was approved by a three‑member Cabinet Sub‑Committee comprising Arora, Finance Minister Harpal Singh Cheema and Social Security Minister Dr. Baljit Kaur, and will now be sent to Chief Minister Bhagwant Singh Mann for final approval.
This decision is part of the Punjab government’s effort to address the wage gap that emerged after the December 2020 pay structure change. It follows a statewide strike on 27 August, where over 300,000 employees demanded the release of a pending 18% DA and protested against disciplinary notices issued for unauthorized absence. The government has urged unions to engage in dialogue, calling employees the backbone of good governance, while promising a “Janmashtami gift” in the form of the DA hike.
By aligning post‑2020 recruits’ DA with the 7th Pay Commission, Punjab aims to standardise salaries across all cadres and reduce disparities that have drawn criticism from opposition parties. The move also reflects the state’s commitment to maintaining parity with Central government employees while ensuring that newer hires receive comparable benefits.