Punjab Newsline | Chandigarh
Punjab Finance Minister Harpal Singh Cheema on Tuesday said the state government would honour all legal and constitutional liabilities, but was currently reviewing the Punjab and Haryana High Court’s order directing it to stop advertisements and release pending Dearness Allowance (DA) arrears to around 8 lakh employees and pensioners.
Cheema said several important legal aspects were not adequately considered during the hearing and required further examination by the government’s legal team.
“The government will pay all legally and constitutionally payable dues. However, many aspects were ignored before the High Court. Several judgments were not cited, and their interpretation is also an issue,” Cheema said.
He added that the judgment delivered was not in line with the nature of the arguments presented before the court.
“We are getting the matter reviewed legally and constitutionally by our legal team. A decision will be taken after that,” he said.
The minister, however, did not clearly state whether the Punjab government would challenge the order in the Supreme Court.
High Court’s directions
Punjab and Haryana High Court had on Monday directed the AAP-led Punjab government to release the pending DA arrears within 15 days, failing which it would have to pay 6% interest on the outstanding amount. The court also asked the government to stop spending on advertisements until compliance with the order.
Cheema traces arrears to previous governments
Cheema said the issue originated during the tenure of the Shiromani Akali Dal–BJP alliance government, when the Pay Commission report was submitted in 2016 but was not implemented.
According to him, discussions continued for years and the report was finally implemented only shortly before the 2022 Punjab Assembly elections.
He said the DA arrears from 1 January 2016 to July 2021 were frozen and not released, resulting in an accumulated liability of Rs 14,191 crore.
“The arrears began during the Akali Dal-BJP government. The Congress was also in power for five years, but no payment was made,” Cheema said.
Government cites phased liquidation plan
The finance minister said the government had already submitted a liquidation plan before the High Court, which had been accepted.
He stated that:
In 2024-25, arrears for pensioners above 85 years were paid.
In 2025-26, payments were made to pensioners above 75 years.
In 2026-27, the government has started releasing pending DA to employees and pensioners from April 2026 onwards.
Cheema claimed that out of the total Rs 14,191 crore liability, the government had already paid around Rs 6,000 crore.
Punjab paying among the highest salaries, says FM
Defending the government’s employee compensation record, Cheema said Punjab was among the states paying the highest salaries in the country and in some categories was paying more than the Centre.
He cited the example of a clerk in Punjab drawing Rs 54,812, compared with Rs 36,960 under the Central government, a difference of Rs 17,852. Similar salary structures, he said, applied to constables and other categories of employees.
He also noted that the state had decided in 2020 to implement the Central Pay Commission structure for newly recruited employees, and recruitment has been carried out on that basis.
High Court order has triggered a major political and financial debate in Punjab, with employee unions demanding immediate compliance while the government weighs its legal options and the fiscal implications of releasing the remaining arrears.
