Punjab DA Hike 2026: The Punjab government has formally notified an 8 percentage-point increase in Dearness Allowance (DA) for its state government employees. The Finance Department issued the notification on September 23, raising the existing DA rate from 42% to 50% with effect from September 1, 2026. The revised DA will be payable with the September salary.
A separate notification has also extended the same increase in Dearness Relief (DR) to pensioners and family pensioners, taking the rate from 42% to 50%.
The state government said the decision is intended to provide financial support to employees and pensioners amid rising costs of essential goods.
DA Hike Follows Meeting With Employee Representatives
The decision came after a September 18 meeting between Chief Minister Bhagwant Mann and representatives of employee and pensioner organisations. The discussions included the demand for higher DA and other service-related matters. Following the discussions, the government moved ahead with the formal notification.
The latest announcement provides an 8 percentage-point increase, taking the DA rate to 50%. However, the issue of earlier pending DA and DR instalments and arrears remains separate from the newly notified increase. Reports have noted that employee organisations have continued to raise questions about the outstanding dues.
85,000 Employees and the Earlier DA Proposal
Earlier in September, the Punjab government announced a proposal to increase DA for around 85,000 employees recruited after July 17, 2020, from 42% to 60%, an increase of 18 percentage points. Cabinet Minister Aman Arora said the proposal was recommended by a Cabinet sub-committee examining employee issues.
These employees were recruited under a pay structure linked to the 7th Central Pay Commission, while their DA had remained at the Punjab rate of 42%. Employees recruited before July 2020 were paid under the Punjab Pay Commission structure.
The government had described the difference as creating two separate pay structures in the state: the Punjab basic pay scale and the Central basic pay scale based on the 7th Central Pay Commission.
What the Latest Notification Means
With the latest Finance Department notification, the DA rate for Punjab government employees moves from 42% to 50%, effective September 1. Pensioners and family pensioners will also receive an equivalent increase in Dearness Relief.
The Punjab decision concerns state government employees and pensioners and should not be confused with any separate decision on Dearness Allowance for central government employees.
Disclaimer
This article is based on the Punjab Finance Department notification and publicly reported information available as of September 24, 2026. DA, DR, arrears and payment schedules may be subject to further government orders or clarifications. Employees and pensioners should refer to official Punjab government notifications for the latest information.