The Punjab and Haryana High Court has ordered the Punjab government to release all pending installments of Dearness Allowance (DA) to state employees and pensioners by June 30. The court’s directive comes in response to a series of petitions alleging “hostile discrimination” in the disbursement of financial benefits compared to judicial and all-India service officers.
Justice Harpreet Singh Brar, while hearing a cluster of petitions, dismissed the state’s submission regarding its strained financial health as a justification for the delay. The court has further mandated that a compliance report be submitted, with the next hearing scheduled for July 2.
The legal challenge was initiated by state employees and pensioners, including staff from the Punjab State Power Corporation Limited (PSPCL). The petitioners argued that DA installments effective from July 1, 2023, remain unpaid, causing significant financial hardship.
Historically, the Punjab government has aligned its DA rates and patterns with those of the Central Government, a policy rooted in the recommendations of the first Pay Commission and reaffirmed by the 5th and 6th Punjab Pay Commissions. The Council of Ministers formally approved this alignment on June 17, 2021.
A central argument in the petitions was the “differential treatment” allegedly accorded to different classes of officers within the state. The petitioners submitted that while they faced delays, all-India service officers and judicial officers serving in Punjab have been receiving their DA regularly, on par with Central Government timelines.
The counsel for the petitioners highlighted that the Central Government revises DA twice annually (January 1 and July 1) based on the All India Consumer Price Index. While five installments were eventually paid to the petitioners, the fifth installment—due on January 1, 2023—was not released until November 1, 2024.
Advocate Rashpinder Singh, representing the PSPCL employees, informed reporters that the court’s interim order is a clear mandate for the state to settle its dues. By rejecting the state’s plea of financial instability, the court emphasized that the statutory and policy-based rights of employees and pensioners cannot be indefinitely deferred.
The upcoming July 2 hearing will review the Punjab administration’s compliance with this deadline and determine the status of any remaining arrears.
