Clear Dearness Allowance Dues Within 15 Days: Court Directs Punjab Government

Punjab and Haryana High Court directs Punjab government to clear DA arrears of Rs 14,191 crore within 15 days.

03 Aug 2026, 08:57 · www.ndtv.com

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Punjab And Haryana High Court directs state to clear DA arrears of six lakh employees in 15 days
Court upheld earlier order mandating Rs 14,191 crore payment to employees, pensioners
Government barred from non-essential spending till dues are cleared, with 6% interest penalty

Will the government have to pay interest on my unpaid DA?
Chandigarh:

In a major relief for nearly six lakh Punjab government employees and pensioners, the Punjab and Haryana High Court has directed the Punjab Government to clear their pending Dearness Allowance (DA) arrears within 15 days after dismissing the state's Letters Patent Appeal (LPA).

The High Court upheld the earlier order passed by the single-judge bench, reaffirming that the government is liable to release the outstanding dues to eligible employees and pensioners.

The order to release Dearness Allowance will entail a liability of an estimated Rs 14,191 crore.

According to the court's directions, the Punjab Government must ensure that the arrears are paid within 15 days. The Chief Secretary has also been directed to file an affidavit before the court after the payment is completed, confirming compliance with the order.

In a significant direction, the court has restrained the Punjab Government from spending on advertisements and other non-essential schemes until the pending dues of employees and pensioners are cleared. The order further states that if the government fails to make the payment within the stipulated one-month period, the outstanding amount will attract 6 per cent annual interest.

The verdict has triggered political reactions across party lines.

Congress MLA Pargat Singh welcomed the judgement and questioned the government's financial priorities. He said that while funds were available for other schemes, the legitimate dues of employees and pensioners had remained unpaid. He termed the High Court's decision a victory for employees and pensioners waiting for their rightful payments.

Warris Punjab De leader and MLA Manpreet Singh Ayali, also welcomed the judgement and said his party would raise the issue on the floor of the Punjab Assembly. He urged the government to release the pending arrears at the earliest and comply with the High Court's directions.

Responding on behalf of the ruling Aam Aadmi Party, MLA Manwinder Singh Giaspura said the government stands with employees and pensioners. He expressed confidence that Chief Minister Bhagwant Mann would find a solution to ensure that the dues are paid in accordance with the court's order.

The High Court's ruling is expected to have significant financial implications for the Punjab Government while bringing long-awaited relief to lakhs of serving employees and retired pensioners across the state.

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