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The High Court's decision comes as a massive victory for the employee unions who have been protesting for their rightful dues for years. Justice Harpreet Singh Brar, while hearing the petitions, emphasized that Dearness Allowance is not a 'bounty' or a gift from the government but a legally enforceable right of the employees to cope with the rising cost of living.
The court observed that withholding these payments citing "financial constraints" is not a valid excuse. The bench noted that while the state cabinet had approved the schedule for disbursal back in February 2025, the actual implementation had been lagging, causing undue hardship to the workforce and retirees.
Strict Deadlines and 6% Interest Penalty
To ensure the government doesn't delay further, the High Court has set a firm deadline of April 30, 2026, to clear all pending installments of revised pensions and DA arrears.
But there’s more—the court has also ordered the Punjab government to pay an interest of 6% per annum on the delayed payments. Furthermore, if the state fails to meet the April 30 deadline, the interest rate will automatically jump to 9% per annum until the full amount is realized. This move is seen as a way to hold the executive accountable for the administrative delays.
Focus on Pensioners and Late Employees
The court expressed deep concern over the fact that more than 35,000 pensioners passed away since 2016 while waiting for their arrears. The judgment highlighted that elderly retirees should not be forced to spend their "sunset years" in legal battles for their own hard-earned money, especially when medical expenses and inflation are at an all-time high.
What This Means for the Punjab Government
The Chief Secretary of Punjab has been directed to ensure the compliance of this order and file a report within three months. This ruling puts the Bhagwant Mann-led government in a position where they must prioritize employee welfare and manage the state treasury to fulfill these statutory obligations immediately.
