Punjab Employee Pay Arrears: Government Says ₹14,191 Crore Dues Came From Previous Regimes
Punjab says previous governments left ₹14,191 crore in pay arrears, while over ₹6,000 crore has already been cleared.
The Punjab government has defended its handling of employee salary dues, saying it inherited a massive financial burden from previous administrations. Finance Minister Harpal Singh Cheema said the current government is gradually clearing pending pay commission arrears while ensuring that legally valid payments continue without affecting the state's financial stability.
He added that the government has already released thousands of crores under a court-approved repayment schedule and is reviewing the latest High Court order before taking any further legal steps.
Arrears Linked to 2016 Pay Commission
Addressing the media in Chandigarh, Cheema said the issue dates back to the implementation of the state pay commission recommendations.
According to him, the report was prepared during the Shiromani Akali Dal-BJP government in 2016, but it remained pending for several years. When the recommendations were finally implemented in July 2021 under the Congress government, dearness allowance (DA) arrears accumulated over several years remained unpaid.
He said this resulted in a financial liability of ₹14,191 crore, which the present AAP government inherited after assuming office.
Over ₹6,000 Crore Paid Under Court-Approved Plan
Cheema said employee organisations later approached the Punjab and Haryana High Court seeking payment of the pending arrears.
Following the court proceedings, the Punjab government submitted a structured repayment plan that received judicial approval.
The Finance Minister said the government has already disbursed more than ₹6,000 crore to employees and will continue releasing the remaining amount in accordance with the approved schedule.
State Says Punjab Already Pays Competitive Salaries
The Finance Minister also defended Punjab's salary structure, stating that government employees in several categories already receive higher basic pay than their counterparts in the Central Government.
He argued that maintaining both higher salary structures and Central Government-level dearness allowance simultaneously would place an additional financial burden on the state.
According to Cheema, this formed a key part of the government's legal argument before the High Court.
Legal Options Under Review
Cheema said the government is carefully examining the recent High Court judgment related to dearness allowance payments.
The state's legal team is reviewing constitutional provisions, earlier Supreme Court rulings and expert legal opinions before deciding whether to challenge the judgment in the Supreme Court.
He reiterated that the government remains committed to paying all dues that are legally and constitutionally payable.
Government Assures Employees
The Finance Minister said the Punjab government is committed to resolving all pending financial liabilities in a transparent and phased manner.
He added that despite inheriting significant financial obligations, the government would continue balancing employee welfare with fiscal discipline while ensuring that pending dues are cleared systematically.
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