Supreme Court Orders West Bengal Government To Pay DA Of State Employees By March

New Delhi: The Supreme Court granted major relief to nearly 20 lakh West Bengal government staff on Thursday, by ordering the Mamata Banerjee government to pay the dearness allowances (DA) to its employees in accordance with the West Bengal Services (Revision of Pay and Allowances) Rules, 2008. 

According to reports, the Court directed that DA arrears for the period from 2008 to 2019 must be paid. The court also said that at least 25 per cent of the outstanding amount must be released by March 6. 

The dispute dates back to a 2022 Calcutta High Court judgement that directed the state to pay DA in accordance with central government rates and clear all dues. The High Court had ruled that employees have a legal right to DA under the state's pay revision rules (ROPA 2009), in compliance with the 5th Pay Commission recommendations. The West Bengal government challenged this in the Supreme Court, citing financial difficulties. Currently, Bengal government employees receive 18 per cent DA, while the central government pays 55 per cent DA to its employees.

A bench of Justices Sanjay Karol and Prashant Kumar Mishra delivered the verdict. This comes after the apex court had directed the West Bengal government to clear 25 per cent of the outstanding DA arrears within six months in May 2025. However, the state had failed to comply with those orders. 

“To receive dearness allowance is a legally enforceable right that has accrued in favour of the respondents-employees of the state of West Bengal. Given its incorporation in RoPA Rules, the All India Consumer Price Index (AICPI) is the standard to be followed by the appellant- state of West Bengal for the determination of ‘existing emoluments’," Justice Sanjay Koral said.

According to the verdict, a compliance report has to be submitted before the apex court by April 15, as a regulatory measure to check if the orders have been executed smoothly. 

“Dearness allowance is designed to neutralise the impact of inflation. When the cost of essential goods increases, salaries that do not account for the same and remain in a bygone era, often fail to meet the basic needs, leading to a decline in living standards," Justice Koral said. “Put differently, dearness allowance is not an additional benefit but a means to maintain a minimum standard of living,” he added. 

The court also instructed the formation of a committee to settle the outstanding DA of state government employees after discussing it with the state government. The committee will be led by Justice (Retd) Indu Malhotra and include Justices (Retd) Tarlok Singh Chauhan and Gautam Bhaduri, and either the Comptroller and Auditor General of India or any other senior-most official in consultation with the state government to calculate the dues and ensure the clearances are settled within the stipulated time period. The committee's recommendations will be submitted by March 6, and the first instalment of the remainder has to be released by March 31.