Good News : Punjab Govt hikes dearness allowance by 8%; DA raised to 50% for State employees

Punjab Newsline | Chandigarh

Punjab Government has announced an 8 percent increase in Dearness Allowance (DA) for state government employees, providing a significant financial boost to lakhs of employees across the state. The Finance Department issued the official notification on Wednesday.

With the latest revision, the DA rate has been increased from the existing 42 percent to 50 percent of the basic pay. The enhanced allowance will come into effect from September 1, 2026, and employees are expected to receive the revised benefit along with their September salaries.

According to the order issued by the Finance Personnel-I Branch of the Finance Department, the increase has been approved for Punjab’s state government employees to help offset the impact of rising living costs.

Copies of the order have been sent to all Special Chief Secretaries, Additional Chief Secretaries, Financial Commissioners, Principal Secretaries, Administrative Secretaries, Heads of Departments, Divisional Commissioners, Deputy Commissioners and other concerned officials for implementation.

Finance Department has also directed District Treasury Officers and Treasury Officers across the state to ensure salary disbursement according to the revised DA rate.

The decision will benefit regular employees serving in various government departments and institutions throughout Punjab. The Finance Department has further informed several state-run universities, including Punjab Agricultural University, Ludhiana; Punjabi University, Patiala; Guru Nanak Dev University, Amritsar; Panjab University, Chandigarh; IK Gujral Punjab Technical University, Jalandhar; Guru Angad Dev Veterinary and Animal Sciences University, Ludhiana; Baba Farid University of Health Sciences, Faridkot; and Guru Ravidas Ayurved University, Hoshiarpur.

Copies of the notification have also been forwarded to the Accountant General (Audit), Punjab, Accountant General (A&E), Punjab, Punjab Bhawan in New Delhi, and other concerned offices, including the Department of Public Relations.

The move is expected to provide immediate financial relief to government employees, with the revised DA component becoming part of their salary payments from this month onward.