The pay divide: Beyond DA, why Punjab employees want two orders scrapped

The fight by Punjab’s government employees over unpaid dearness allowance (DA) has evolved into a broader grievance about the deteriorating terms of service. At the heart of this agitation are two Finance Department orders: one from January 15, 2015, and another from July 17, 2020. These orders have altered the pay conditions for new recruits in comparison to those who joined earlier, creating a two-tier system that unions argue is eroding the financial security and status associated with government jobs.

The January 2015 order, introduced under the SAD-BJP government, brought in a fixed-pay system for probationary employees. Newly recruited staff received a fixed amount equivalent to the minimum pay of the applicable pay band for the first three years, instead of the full salary associated with the post. This system excluded grade pay, annual increments, and several other salary components, although a travelling allowance was permitted.

The probation period was initially two years but was extended to three years in September 2016. After completing probation, probationers were entitled to the regular Punjab pay scale.

Following the shift to the Congress government and the appointment of Manpreet Singh Badal as Finance Minister, the July 2020 order came into effect. This order capped the pay scales for fresh recruits at the levels permissible under the Seventh Central Pay Commission, creating a stark contrast between employees hired before and after the cut-off date.

Employees recruited post-July 17, 2020, received lower starting salaries compared to their counterparts hired earlier, potentially impacting their take-home pay, dearness allowance, house rent allowance, and other salary-linked benefits.

Both orders have been central to the unions' demands for their withdrawal and the restoration of earlier pay structures. The unions argue that these orders represent a gradual erosion of the financial security and status traditionally associated with government employment. They are now pushing for the immediate withdrawal of these orders and the implementation of the recommendations of the Punjab Pay Commission.

The pay-scale dispute is part of a larger demand for pending DA arrears, with unions claiming that 18% DA has been unpaid since January 2023. The government has paid around Rs 5,000–6,000 crore, but employees dispute their calculations, stating that the arrears should be cleared in full. The Punjab Pay Commission recommendations are under consideration, and both the Central and Punjab governments are working on resolving these longstanding issues.