DA news: Punjab committed to pay DA dues, exploring legal options, says FM, even as employees threaten strike on 27 Aug

Punjab Finance Minister Harpal Singh Cheema said the state is considering legal options, including appealing to the Supreme Court, after the Punjab and Haryana High Court directed it to clear pending dearness allowance (DA) of employees and pensioners within 15 days, PTI reported.

Speaking to reporters on Tuesday, a day after the HC order, Cheema said the state is committed to employees and all constitutionally and legally valid dues will be paid. “Our legal team is examining the recent judgment in detail, reviewing the judicial precedents and consulting legal experts to determine the appropriate legal course, including the possibility of filing an appeal before the Supreme Court,” he said.

Punjab HC order on DA dues: What did the court say?

The court on Monday dismissed appeals by the Punjab state government and the Punjab State Power Corporation Limited (PSPCL) and directed them to clear DA dues of employees and pensioners within a fortnight. In case of default of payment within the timeline, the bench has imposed simple interest of 6% per annum on the unpaid amounts from the due date.

It barred the government from “unproductive expenditures,” i.e. large-scale social media campaigns and / or print advertisements as these costs “cannot be justified” while denying employees their dues. Further, it also directed the chief secretary to ensure “scrupulous compliance” with its directions and ordered that a compliance report be filed through an affidavit before the HC's registry by 31 August.

These dues are estimated to be ₹15,000 crore, according to Advocate Rashpinder Singh, counsel for PSPCL employees.

‘Punjab pays employees 30-70% higher than Centre’

The minister added that Punjab offers among the highest government pay scales in the country — even compared to the Centre in several categories and has inherited a ₹14,191 crore liability in employee pay commission arrears due to the policies of the previous governments.

Cheema added that the current AAP government has cleared more than ₹6,000 crore under a liquidation plan and is committed to paying all constitutionally and legally valid dues while examining the recent HC order and available legal remedies.

In an official statement this week, Punjab said that state employees “historically” received higher salaries than central government staff, with some earning 30-70% more under the state's pay structure, another PTI report said.

It added that while DA is set at 42% of basic pay, compared to the Centre's 60%, state employees receive higher aggregate monthly salaries due to their pay scales. It added that the higher central government DA rate cannot be applied on top of Punjab's already higher pay scales, as the two pay structures cannot be combined.

Employees, pensioners hold protest for demands

A number of employees and pensioners held a massive protest at Sector 39 in Chandigarh on Friday (7 August), warning the state government of a wider strike on 27 August, if their demands are not met.

The protest was held under the banner of Sanjha Mulazam and Pensioners Front and Sanjha Mulazam Manch Punjab with over several employees' organisations taking part from several parts of the state, according to a third PTI report.

Meanwhile, union leaders criticised the Punjab government and state finance minister as “distorting facts” on the issue of pay scales instead of addressing their demands.

The Joint Coordination Committee (JAC) of Punjab Government Employees and Pensioners is pushing long-pending pension DA and pension-related demands to be fulfilled by the state government. The Punjab employee and pensioners' charter of demands is as follows:

• Approval for 18% DA hike,
• Restoration of the Old Pension Scheme (OPS),
• Implementation of the 4-9-14 Assured Career Progression (ACP) Scheme,

• Withdrawal of notifications related to probation and pay rules,
• Regularisation of contractual, outsourced and other temporary employees,
• Revision of pensions in line with the recommendations of the 6th Punjab state pay commission,
• Restoration of withdrawn allowances,
• Enhancement of retirement gratuity,
• Implementation of the 6th Punjab state pay commission’s remaining recommendations, and
• Extension of minimum wages to women working on honorarium under various government schemes.

(With inputs from Agencies)