The Supreme Court on Friday directed the West Bengal government to pay 25 per cent Dearness Allowance (DA) to its state government employees. The interim order was passed by a bench comprising Justices Sanjay Karol and Sandeep Mehta, with a timeline of three months for compliance. The case has been listed for further hearing in August.
The direction comes amid a long-standing dispute over DA parity with central government employees. The issue began when a group of West Bengal state government employees approached the Calcutta High Court seeking DA at the same rate as their central counterparts, along with arrears. In May 2022, the High Court ruled in favour of the employees and ordered the state government to match the central DA rates.
However, the West Bengal government challenged the decision in the Supreme Court by filing an appeal in November 2022. Since then, the state has made marginal hikes in DA, but the increases have fallen short of bridging the gap with central government rates. Currently, central government employees receive 55 per cent DA, while West Bengal employees get only 18 per cent—even after a 4 per cent hike added in April 2025.
The gap has led to growing dissatisfaction among more than 10 lakh state government employees and pensioners. The DA is a crucial component of compensation, meant to offset the impact of inflation and rising living costs, and is revised periodically based on economic indicators.
The Supreme Court’s interim order is expected to bring partial relief to state employees, as they await a final resolution on full DA parity in the next hearing.