The landscape of service benefits for government employees in Punjab continues to evolve—this time with a significant development regarding Dearness Allowance (DA) for employees whose pay has been refixed under the 5th Punjab Pay Commission (5th PPC).

On 26 January 2025, the Punjab Finance Department issued a crucial directive mapping 42% DA under the 6th PPC to 221% DA under the 5th PPC, thereby establishing official DA parity across pay matrices. This order was issued in compliance with the Punjab and Haryana High Court judgment in Karnail Singh & Others v. State of Punjab (CWP-25257-2022).

However, many categories of employees whose pay was refixed under the 5th PPC Matrix from 7th CPC Matrix – like ETT Teachers / Masters / Lecturers who are receiving salary under the 5th PPC Matrix – continued to receive DA at the outdated rate of 148%, even after their salary was refixed under the 5th PPC matrix.

This disparity prompted fresh litigation, including the case of Daljit Singh & Others v. State of Punjab & Others (CWP-36061-2025), where the petitioners sought DA at 221% in terms of the 5th PPC.

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What Exactly Is the 221% DA Formula?

The Finance Department’s letter dated 26.01.2025 (Click here to download copy) clearly states:

D.A. @ 42% under the 6th Punjab Pay Commission corresponds to D.A. @ 221% under the 5th Punjab Pay Commission.

This mapping is the official DA-parity formula for all employees whose pay is structured in the 5th PPC matrix—whether they are teachers, home guards, or any other category of employees.

This document is significant because:

• It recognizes 221% DA as the correct and current applicable rate under the 5th PPC.
• It was issued by the Finance Department itself, the competent authority.
• It was passed in compliance with a High Court order, giving it enhanced legal effect.
• It applies generally to all 5th PPC employees, not only the petitioners in the original case.

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Why Are Other Posts Still Receiving Only 148% DA?

Even after their salaries were refixed under the 5th PPC, many employees on other posts continued receiving DA:

• Not at 221%, the revised and correct rate;
• But at 148%, the outdated rate from 2020.

This creates:

1. Discrimination (Violation of Article 14 & 16)

Other Posts form part of the same class of 5th PPC employees. Paying them outdated DA while others receive 221% is arbitrary.

2. Financial Loss to Employees

Holding DA at 148% significantly reduces monthly salary and arrears.

3. Violation of Legitimate Expectation

Once the Finance Department itself approves 221% DA, employees reasonably expect implementation.

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What Did the High Court Do in Daljit Singh’s Case?

In CWP-36061-2025, the petitioners sought a writ of mandamus directing the State to revise their DA to 221%. During the hearing, counsel limited the prayer to seeking a direction for the competent authority to consider and decide their legal notice dated 05.11.2025.

The State counsel did not oppose this prayer.

Accordingly, the Court directed the competent authority (DPI) to:

Consider and decide the petitioners’ legal notice within 3 months
from the date of receiving a certified copy of the order.

This keeps the claim for 221% DA alive, requiring the State to pass a speaking order on the issue.

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What Happens Next for Employees?

If the State:

✔ Grants 221% DA

Employees will receive updated DA and arrears.

✘ Rejects the claim or delays decision

Employees may re-approach the High Court, as the matter then becomes ripe for judicial adjudication on merits.

✔ Fails to issue any order

A contempt petition can be filed for violating the Court’s direction.

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Why This Issue Matters

The DA revision impacts:

• Thousands of employees who are being paid salary under 5th PPC Matrix
• Employees refixed under the 5th PPC pursuant to various court orders from 7th PPC Matrix
• Service equality under Articles 14 and 16
• Monthly take-home salary and arrears running into lakhs

The 26.01.2025 notification is thus a cornerstone document, and litigation around its implementation is expected to continue.

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Full Text of the High Court Order (Reproduced for Reference)

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

108 CWP-36061-2025 (O&M)
Date of Decision: 04.12.2025

DALJIT SINGH AND OTHERS … Petitioners
Versus
STATE OF PUNJAB AND OTHERS … Respondents

CORAM: HON’BLE MR. JUSTICE DEEPINDER SINGH NALWA

Present: Mr. Supinder Singh Sohi, Advocate for the petitioners.

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ORDER

Deepinder Singh Nalwa, J. (Oral)

1. In the present writ petition, the petitioners are praying for issuance of a writ in the nature of mandamus directing the respondents to revise the DA being paid to the petitioners in terms of 5th Punjab Pay Commission Matrix to the extent of 221% as has been revised by the Department of Finance vide order dated 26.01.2025 (Annexure P-8), in pursuance to the judgment passed by this Court in CWP No. 25257 of 2022 titled as ‘Karnail Singh and others vs. State of Punjab and others’, decided on 13.09.2024.
2. Learned counsel appearing on behalf of the petitioners, on instructions from the petitioners, submits that at this stage, he will be satisfied if a direction is given to respondent No.3 to consider and decide the legal notice dated 05.11.2025 (Annexure P-9) served by the petitioners, taking into consideration the judgment relied upon by the petitioners, in the said legal notice, within a time-bound manner.
3. Notice of motion.
4. Mr. Amarpreet Singh Bains, AAG, Punjab, accepts notice on behalf of respondents and does not object to the prayer made by learned counsel for the petitioners.
5. In view of the above and without commenting upon the merits of the case, this petition is hereby disposed of with a direction to respondent No.3 to consider and decide the legal notice dated 05.11.2025 (Annexure P-9), served by the petitioners within a period of 03 months from the date of receipt of certified copy of this order in accordance with law/rule.
6. Pending applications, if any, shall also stand disposed of accordingly.

(DEEPINDER SINGH NALWA)
JUDGE
04.12.2025

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Click here to download copy of order.