The state government employees are replaying an old electoral script ahead of the 2027 Assembly elections, demanding the release of Dearness Allowance (DA) arrears, even as the government persists with the idea of an honourable compromise that works for both sides.At the heart of the confrontation are the employees’ demands for payment of 18 per cent pending DA arrears, restoration of the old pension scheme (OPS), withdrawal of the July 17, 2020, decision taken by the previous Congress government imposing central pay scales on all future recruits, and reversal of the January 15, 2015, letter that paved the way for payment of only basic pay to employees during their three-year probation period.The Punjab Government argues that successive state pay commissions constituted by previous governments have already given employees a much higher pay scale than that of the Centre’s employees. The government has repeatedly maintained that it inherited the pending DA arrears from the previous Congress and SAD-BJP governments. It also argues that DA parity with the Centre cannot be implemented as the Punjab Government employees already enjoy higher pay scales than their central counterparts. The take-home salary of a Punjab Government clerk with 42 per cent DA is Rs 54,812 per month, while that of a central government clerk with 60 per cent DA is Rs 36,962.Finance Minister Harpal Cheema said, “We have been disbursing the arrears as per the approved liquidation plan. We have already cleared more than Rs 4,500 crore in dues. We are willing to talk to employees and fulfil our commitment, but it cannot be done in one go.” With around 3.5 lakh employees and nearly four lakh pensioners backing the agitation, the sheer size of the constituency has turned the dispute into a potential electoral liability for the Mann government. Apart from employees, farm unions have also joined the stir. “A majority of employees are from farming families,” the union leaders argue.Employees staged a massive rally on August 7 and attempted to march towards the Punjab Vidhan Sabha. On August 27, they observed a “Maha Hartal”, proceeding on mass casual leave. The agitation gathered momentum after the Punjab and Haryana High Court, on August 3, directed the state to clear pending DA dues within 15 days. The liability is estimated at Rs 14,191 crore. The agitating employees suspended their protest after the intervention of the state Chief Secretary last week.The political leadership has since repeatedly maintained that it is willing to hold talks with employees. AAP state president Aman Arora has said the party’s doors remain open. Arora recently told The Tribune: “The employees and pensioners are an integral part of the government’s family, and we are open to resolving their legitimate demands.” The Mann government’s reluctance to concede is rooted as much in economics as in politics. The DA liability alone is enormous. Conceding the other demands would have a cascading financial impact. The government would have to contend with the fiscal implications of restoring the OPS, removing pay anomalies, restoring assured career progression benefits, and regularising contractual and outsourced workers. Equally important, the AAP government would not want to send out a message that sustained street pressure can force it to concede to every demand.Recurring hurdleBefore the 2012 elections, the SAD-BJP government faced sustained protests over pay anomalies arising out of the Fifth Punjab Pay CommissionAhead of the 2017 poll, the SAD-BJP regime faced protests by employees, teachers, NHM and contractual workersIn 2021, just before the elections, employees blocked roads and followed then CM Charanjit Singh Channi to his residence