Punjab has cleared over ₹6,000 crore in pay commission arrears, reviewing HC ruling: Cheema

Punjab Finance Minister Harpal Singh Cheema on Tuesday said the state government has paid more than ₹6,000 crore in pay commission arrears under a High Court-approved settlement plan and is examining legal options following a recent Punjab and Haryana High Court judgment on dearness allowance (DA) payments.

Addressing a press conference in Chandigarh, Cheema said Punjab inherited a liability of ₹14,191 crore in pay commission arrears from previous Shiromani Akali Dal-Bharatiya Janata Party (SAD-BJP) and Congress governments. He added that the state remained committed to paying all constitutionally and legally valid dues.

Government cites inherited liability

Cheema said the pay commission report was prepared in 2016 during the SAD-BJP government's tenure but was implemented only in July 2021. According to him, the delay resulted in DA arrears accumulating for the period between January 1, 2016, and July 2021, creating a liability of ₹14,191 crore.

He alleged that while the previous Congress government initiated implementation of the pay commission recommendations, it did not release any amount towards the arrears before completing its tenure.

The minister said employee groups later approached the High Court, following which the Punjab government prepared a structured settlement plan that was accepted by the court.

"Out of the total liability of ₹14,191 crore, the government has already disbursed more than ₹6,000 crore under the approved settlement plan," Cheema said.

State studying legal remedies

Referring to the recent High Court order relating to DA payments, Cheema said the government's legal team was examining the judgment, relevant constitutional provisions and judicial precedents before deciding its next course of action.

He said Punjab currently offers among the highest government pay scales in the country and that salaries in several categories are higher than those of the central government.

According to Cheema, the state's legal position is that it cannot simultaneously sustain both higher basic pay scales and the highest DA rates applicable under the central government's pay structure.

The minister also said the previous Congress government had decided that newly recruited employees would come under the Central Pay Commission framework.

Cheema reiterated that the state government remained committed to clearing all legally valid dues despite the financial burden inherited from previous governments. He said the legal team was also considering the possibility of challenging the latest High Court ruling before the Supreme Court.