Punjab Government Announces 8% DA Hike Ahead Of 2027 Polls

The Bhagwant Mann government's decision to increase Dearness Allowance by 8 per cent for around 8 lakh government employees and pensioners comes as a significant relief for the ruling AAP at a time when employees' grievances have emerged as a persistent political challenge.

Government employees were an important constituency for the Aam Aadmi Party (AAP) in the 2022 Punjab Assembly elections, with issues such as restoration of the Old Pension Scheme forming a significant part of the party's pre-election pitch. After coming to power, the Mann government announced an in-principle decision to restore the OPS in October 2022 and subsequently notified the scheme in November. At the time, the move was widely linked by political observers to the importance of the employee vote.

But relations between the government and sections of the employee community have remained contentious. Staff unions have repeatedly raised demands over pending DA, arrears, pension-related issues, allowances, probationary-period salaries and implementation of the OPS. In recent weeks, protests by employees, pensioners and scheme workers intensified.

Against this backdrop, the 8 per cent DA hike announced on September 18 assumes significance. The government says the increase will benefit around 8 lakh employees and pensioners, with the two 4 per cent instalments being reflected in accounts from October.

The announcement also comes with a broader attempt by the Mann government to reset its engagement with employees.

Mann has announced compulsory monthly meetings with employee representatives to address grievances, while promising to examine long-pending demands including the 2.59 pension multiplication factor, OPS-related issues, restoration of allowances and Assured Career Progression.