The Supreme Court has ruled that dearness allowance (DA) is a legally enforceable right and directed the West Bengal government to pay 25% of the arrears to its employees by March 6, 2026. The Court also constituted a high-powered committee to oversee full payment of dues for the 2008–2019 period, including benefits for retired employees.
The dispute over DA began when a section of West Bengal government employees approached the Calcutta High Court, seeking parity in DA rates with central government employees. In May 2022, the High Court ruled in favour of the employees and directed the state to match the central rates and clear arrears.
The West Bengal government challenged the High Court verdict in the Supreme Court in November 2022 and continued to grant only marginal DA increases, which lagged significantly behind the central government’s rates. As of April 2025, central employees were receiving 55% DA, while state employees received only 18%.
A bench of Justices Sanjay Karol and Prashant Kumar Mishra delivered the verdict on Thursday, firmly upholding the High Court’s decision. The bench held:
“To receive dearness allowance is a legally enforceable right that has accrued in favour of the respondents-employees of the State of West Bengal… The employees of the appellant-State shall be entitled to release of arrears in accordance with this judgment for the time 2008-2019.”
Highlighting the essential nature of DA in a welfare state, the Court stated:
“Dearness Allowance emerges as a practical instrument of protection… It is not an additional benefit but a means to maintain a minimum standard of living.”
Given the scale of the financial implications — with arrears estimated to be around ₹41,000 crore — the Court formed a committee comprising:
- Justice Indu Malhotra (former Supreme Court judge)
- Justice Tarlok Singh Chauhan (former Chief Justice or Judge of High Court)
- Justice Goutam Bhaduri (former Chief Justice or Judge of High Court)
- The Comptroller and Auditor General of India or a senior-most officer nominated by him
The committee is tasked with determining:
- The total arrears payable
- A detailed schedule of payments
- Periodic verification of disbursements
The Supreme Court directed that:
- 25% of the outstanding DA must be paid by March 6, 2026
- The first instalment under the committee’s plan must be disbursed by March 31, 2026
- A status report must be filed before the Court by April 15, 2026
- Retired employees are also entitled to receive arrears in accordance with the judgment
With this ruling, the Supreme Court has not only affirmed the enforceability of DA as a right but also provided a clear roadmap for compliance by the West Bengal government, ensuring accountability and relief for thousands of current and retired state employees.
