Supreme Court Directs West Bengal to Pay 25% DA to State Employees

The ruling comes as part of an ongoing dispute over salary adjustments, with employees demanding parity with their central government counterparts.

A bench of Justices Sanjay Karol and Sandeep Mehta ruled on Friday that the payment must be completed within three months, setting the next hearing for August. The controversy dates back to 2022 when the Calcutta High Court initially directed the state to match DA rates with central government employees. However, the West Bengal government had filed an appeal in the Supreme Court, citing financial constraints.

Currently, the central government provides a 55% DA rate to its employees, while West Bengal state employees receive only 18%, including a recent 4% hike added on April 1, 2025. The gap has sparked dissatisfaction among state employees, leading to repeated protests and legal battles.

Dearness Allowance serves as a cost-of-living adjustment for government workers, ensuring their salaries keep pace with inflation. More than 10 lakh state employees and pensioners stand to benefit from this Supreme Court directive.

Economic analysts suggest the decision could have significant financial implications for the state government, which has repeatedly argued against matching central DA rates due to budgetary constraints. The ruling, however, reinforces employees’ demands for fair compensation.

The West Bengal government has yet to issue an official response following the Supreme Court’s verdict.