The Punjab government announced an 8 per cent increase in Dearness Allowance (DA) for approximately 8 lakh employees and pensioners, ending a prolonged standoff with state workers. The decision followed a meeting between Chief Minister Bhagwant Mann and representatives of employee and pensioners' organisations, as reported by The Times of India. The DA hike will be implemented from October 1, with two instalments of 4 per cent each to be released in the coming months.

The move comes amid growing pressure from government employees, who had been on strike since August 27, demanding resolution of pending DA arrears. The strike, involving over 3 lakh workers, was a response to the state government's refusal to clear arrears as directed by the Punjab and Haryana High Court. The government had previously challenged the court's order in the Supreme Court, arguing that releasing Rs 14,191 crore in arrears within two weeks was impractical.

In a statement, Mann said the DA increase reflects the government's commitment to the welfare of its workforce, whom he described as the backbone of Punjab's administrative machinery. He also announced plans for monthly meetings with employee representatives to address long-standing issues, including the Old Pension Scheme (OPS), salary during the probation period, and other pending demands. The chief minister emphasized that the government would examine these issues with an open and sympathetic approach, ensuring continuous dialogue with its workforce.

The Times of India reported that Gurnam Singh Virk, president of the Punjab State Ministerial Services Union, confirmed that the DA increase will be reflected in salaries from October 1. Virk also noted that the government had assured employees that other unresolved issues would be discussed in the coming weeks.

NDTV India highlighted the political significance of the DA hike, noting that government employees were a key constituency for the Aam Aadmi Party (AAP) in the 2022 Punjab Assembly elections. The party had previously pledged to restore the Old Pension Scheme, which it did in November 2022. Despite these efforts, tensions between the government and employee unions have persisted, with staff unions continuing to raise demands over pending DA, arrears, and pension-related issues.

The government's decision to increase DA by 8 per cent is seen as an attempt to reset its relationship with employees ahead of the 2027 state elections. Mann's announcement of monthly meetings with employee representatives and a commitment to examine long-pending demands suggests an effort to address grievances and maintain the support of a crucial voting bloc.