Big DA Relief: West Bengal Government Set to Pay 25% Dearness Allowance, Explores Loan Options
State government employees and pensioners in West Bengal can finally breathe a sigh of relief as the Supreme Court has directed the West Bengal government to pay 25% Dearness Allowance (DA) within three months. This significant development comes after a prolonged legal battle and widespread discontent among state government staff over the long-standing disparity between state and central government DA rates. The state government is reportedly exploring various financial avenues, including taking a loan, to meet this substantial payout.
(toc)
The DA Discrepancy: A Persistent Issue
For years, West Bengal government employees have been advocating for DA parity with their counterparts in the central government. While central government employees currently receive 55% DA, state government employees in West Bengal were getting only 18%, even after a recent 4% hike implemented in April 2025. This significant 37% gap has been a constant source of frustration and protest for over 10 lakh state government employees and pensioners, who argue that adequate DA is crucial to offset the impact of inflation and rising living costs.
A Long and Winding Legal Road
The journey to this Supreme Court directive has been arduous. The dispute originated when several state government employees approached the Calcutta High Court, demanding DA at par with central government rates, including arrears. In May 2022, the Calcutta High Court ruled in their favour, instructing the state to match central government DA rates and clear the pending arrears.
However, the West Bengal government challenged this High Court order in the Supreme Court in November 2022, leading to protracted legal proceedings. Throughout this period, despite announcing incremental increases in DA, the state government consistently failed to bridge the substantial gap with central rates. The Supreme Court's latest interim order, issued on May 16, 2025, by a bench comprising Justices Sanjay Karol and Sandeep Mehta, marks a crucial turning point, setting a three-month deadline for the state to comply. Further hearings are scheduled for August to address the remaining dues and broader issues of DA parity.
Financial Implications and Government's Strategy
Paying 25% of the outstanding dearness allowance dues is estimated to result in an outflow of over Rs 10,000 crore from the state's finances, according to calculations by the state Finance Department. This substantial financial burden has prompted concerns among employees in the Finance Department about potential impacts on monthly payments for various welfare schemes administered by the state.
To meet this significant financial commitment, reports suggest that the West Bengal government is actively considering taking a loan. While the specific details of the loan and its source are yet to be officially confirmed, this move underscores the immense pressure on the state exchequer to comply with the Supreme Court's directive and address the long-standing demands of its employees. Chief Minister Mamata Banerjee has previously linked the DA crisis to the Union government, stating that the freezing of payments for several centrally-sponsored schemes has forced the state to fund these projects from its own resources, adding to the financial strain.
What Lies Ahead for State Employees?
The Supreme Court's directive to pay 25% DA is being hailed as a partial victory for the employees. While it doesn't fully resolve the demand for complete DA parity with the central government, it provides much-needed interim relief and sets a precedent for future adjustments. The August hearing will be crucial in determining the final verdict on full DA parity and the resolution of remaining arrears.
The ongoing efforts by the state government to secure funds, possibly through loans, demonstrate a commitment to fulfilling the court's order and addressing the legitimate concerns of its workforce. This development is expected to alleviate some of the financial hardship faced by state government employees and pensioners, who have long awaited a more equitable Dearness Allowance.
Stay tuned to BytesToday.in for more updates like this!
FAQs
Q1: What is Dearness Allowance (DA)? A1: Dearness Allowance (DA) is a cost-of-living adjustment paid by the government to its employees and pensioners. It is designed to offset the impact of inflation and help them cope with rising prices of essential goods and services.
Q2: What is the current DA rate for West Bengal government employees? A2: As of April 1, 2025, West Bengal government employees receive 18% DA. However, the Supreme Court has now directed the state to pay an additional amount to reach 25% within three months.
Q3: Why is there a difference in DA rates between state and central government employees? A3: The difference arises from separate pay commissions and financial policies adopted by the state and central governments. State governments often face different fiscal constraints and may not always match central government DA rates.
Q4: Will the West Bengal government pay all pending DA arrears? A4: The current Supreme Court order specifically directs the payment of 25% DA within three months. Further hearings are scheduled for August to address the remaining dues and the broader issue of full DA parity with central government rates.
Q5: How will the West Bengal government arrange the funds for this DA payment? A5: Reports indicate that the West Bengal government is exploring various financial options, including taking a loan, to meet the substantial financial outlay required for this DA payment.
