Punjab Finance Minister highlights high pay scales amid ₹14,191 crore arrears burden
Emphasising that Punjab already pays some of the highest government pay scales in the country, surpassing the Central Government in several categories, Punjab Finance Minister
Emphasising that Punjab already pays some of the highest government pay scales in the country, surpassing the Central Government in several categories, Punjab Finance Minister Advocate Harpal Singh Cheema on Tuesday, August 4, 2026 said the State Government has inherited a ₹14,191 crore liability in employee pay commission arrears due to the policies of the previous SAD-BJP and Congress governments. He said the AAP-led Punjab Government has already cleared over ₹6,000 crore under a High Court-approved liquidation plan and remains committed to paying all constitutionally and legally valid dues while examining the recent High Court judgment and the available legal remedies. Addressing a press conference at Punjab Bhawan, Finance Minister Cheema said the employee pay commission report was originally formulated in 2016 during the tenure of the SAD-BJP government but remained unimplemented for years.
“The report was implemented only in July 2021. As a result, Dearness Allowance (DA) arrears from January 1, 2016, to July 2021 were frozen, creating a liability of ₹14,191 crore,” he said. The Finance Minister further said that although the process of implementing the pay commission recommendations had been initiated under the previous regime, the then Congress government remained in power without releasing even a single rupee towards clearing these arrears, leaving the entire financial burden for the present government. Explaining the steps taken by the AAP Government, Minister Harpal Singh Cheema said that after various employees approached the High Court, the Punjab Government prepared a structured liquidation plan, which was accepted by the court. “Out of the total liability of ₹14,191 crore, the AAP Government has already paid over ₹6,000 crore to employees.
The High Court accepted the liquidation plan, and its implementation is proceeding smoothly,” he noted. Responding to the recent High Court judgment regarding current DA disbursements, the Finance Minister said certain constitutional benchmarks and judicial precedents appeared to have been overlooked in the interpretation of the single bench. Referring to the 2005 Constitution Bench judgment in the State of Maharashtra case, he said Punjab currently offers some of the highest pay scales in the country, exceeding Central Government pay structures in several categories. Presenting comparisons between Punjab Government and Central Government pay scales for various posts, Minister Harpal Singh Cheema said, “The State Government’s legal argument was that a state could not simultaneously sustain both the highest basic pay scales and the highest Central DA rates when the state’s pay structures were already significantly higher.” He added that the previous Congress government had itself decided that newly recruited employees would be inducted under the Central Pay Commission guidelines.
The BriefWire