In a significant development, the Supreme Court has directed the West Bengal government to pay 25 per cent Dearness Allowance (DA) to its employees. The interim order mandates the state to disburse the payment within a period of three months.
The court will take up the matter again for further hearing in August.
The case stems from a longstanding dispute over DA parity between West Bengal state government employees and their Central government counterparts. Dissatisfied with the existing rates, a section of state employees had approached the Calcutta High Court demanding parity, including arrears. In May 2022, the High Court ruled in their favour, instructing the state to pay DA at the Central government rate.
The West Bengal government, however, challenged this decision and moved the Supreme Court in November 2022. Despite announcing incremental hikes in DA since then, the state has not matched Central rates. Presently, there is still a 37 per cent difference, with Central employees receiving 55 per cent DA.
With the latest hike of four per cent effective from 1 April, 2025, state employees now receive 18 per cent DA—up from 14 per cent. This revision applies to over 10 lakh employees and pensioners but has not fully addressed the widespread dissatisfaction.
Dearness allowance serves as a critical component of government compensation, aimed at offsetting inflation and maintaining the purchasing power of employees. It is calculated as a percentage of basic pay or pension and adjusted periodically to reflect changing economic conditions.
The Supreme Court’s directive is seen as a step toward resolving the ongoing standoff and could influence how state governments handle DA disparities in the future.
