The Supreme Court on Friday directed the West Bengal government to release 25% of the outstanding Dearness Allowance (DA) arrears to its employees within the next three months, offering partial relief in a long-standing dispute over pay parity with central government staff.
A bench of Justices Sanjay Karol and Sandeep Mehta issued the interim order while hearing the state government’s appeal against a 2022 Calcutta High Court ruling, which had directed West Bengal to bring its DA disbursal in line with central government rates.
The court specified that the interim relief would apply to DA arrears accumulated between 2009 and 2019. The decision is expected to benefit nearly six lakh state government employees.
Senior advocate Abhishek Manu Singhvi, appearing for the West Bengal government, submitted that fulfilling the entire DA liability would place a considerable burden on the state exchequer, estimating the total cost at ₹10,000 crore for just the 25% interim payment. Lawyers representing the employees estimate the total DA arrears to be around ₹41,000 crore.
The bench, however, maintained that partial disbursal was necessary as the issue had been pending for years and employees continued to face a growing disparity. The court posted the matter for further hearing in August.
Background of the Case
The dispute began when a group of state employees moved the Calcutta High Court seeking DA at par with central government staff, along with pending arrears. In May 2022, the High Court ruled in their favour, directing the state to align its DA rates accordingly.
Unwilling to implement the full extent of the order, the West Bengal government filed a special leave petition before the Supreme Court in November 2022. Since then, the state has announced only marginal DA increases, which have failed to match the central government’s rates.
As of April 2025, central government employees are receiving 55% DA, compared to only 18% for their West Bengal counterparts—even after a recent 4% hike.
The Supreme Court’s directive is seen as a significant development in the ongoing legal battle, reinforcing employee claims while providing the state a window for gradual compliance.
