Overview
- The protest, which took place on Friday, Aug 7, brought thousands of Punjab government employees, pensioners and teachers to Sector 39 in Chandigarh to demand pending dearness allowance (DA), restoration of the Old Pension Scheme and regularisation of contractual staff.
- Chandigarh police blocked a march toward the Punjab Assembly, used barricades and deployed water cannon to disperse parts of the crowd, and the mobilisation disrupted government offices, schools and traffic across the city.
- A Punjab and Haryana High Court order of Aug 3 directed the state to clear all up-to-date DA instalments within 15 days, barred certain 'unproductive' expenditures until dues are paid, and said unpaid amounts will carry 6% annual interest.
- The AAP government says it inherited roughly ₹14,000 crore in unpaid liabilities and had sought phased payments, a proposal the High Court rejected, and unions paused street agitation after the state agreed to a formal meeting with Chief Minister Bhagwant Mann on Aug 27.
- The dispute now has clear political stakes ahead of the 2027 Punjab polls because government employees and pensioners form a large, statewide voting bloc and union leaders have warned they will resume protests or strikes if the August 27 talks do not produce concrete outcomes.