Punjab defends its pay structure as court-ordered DA dues threaten to widen an already heavy financial burden.

A government statement noted that Punjab state employees have long been better compensated than their central government counterparts, with pay across different cadres running 30% to 70% above equivalent central pay scales. Because of the state's higher pay scales, Punjab government employees in several categories continue to receive higher aggregate monthly salaries even though the state offers Dearness Allowance (DA) at 42% as opposed to the central government's 60%.

The Punjab and Haryana High Court on Monday ordered the state government to resolve outstanding DAs for workers and retirees within two weeks, which prompted the announcement. The Punjab government has consistently maintained that it is willing to ensure that no employee receives less than the total emoluments payable under the central government pay scale together with the central government DA rate, it said.

However, the state has maintained 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, it added. Additionally, Punjab has insisted that the state government's fixation of DA is a sovereign policy decision. Among the main Indian states, Punjab already has the biggest salary and pension burden, according to the report.

The state administration claims that putting the high court's ruling into effect will increase this burden even further, leaving less money for capital and development expenditures. According to the report, a clerk in Punjab makes a total of Rs 54,812 a month, compared to Rs 36,960 in the central government. In a similar vein, a driver in Punjab receives Rs 40,612, compared to Rs 36,960 in the central government.