Supreme Court Orders West Bengal to Pay 25% Dearness Allowance to State Govt Employees

In a significant relief for lakhs of state government employees, the Supreme Court has directed the West Bengal government to pay 25% Dearness Allowance (DA) within 3 months. The interim order addresses the long-standing disparity between state and central government DA rates, with further hearings scheduled for August, as per news reports. 

Supreme Court Issues Interim Relief 

A Supreme Court bench comprising Justices Sanjay Karol and Sandeep Mehta passed the interim order on Friday, May 16, 2025, setting a 3-month deadline for the state to comply. The order is seen as a temporary measure while the broader issue of DA parity awaits final resolution. 

Origins of the DA Dispute 

The dispute began when West Bengal state employees approached the Calcutta High Court, demanding DA at par with their central counterparts. In May 2022, the High Court ruled in their favour, ordering the state to match central government DA rates and provide arrears. However, the West Bengal government appealed the ruling in the Supreme Court in November 2022, leading to prolonged legal proceedings. 

Current DA Discrepancy Widens Dissent  

While the central government currently offers 55% DA, West Bengal employees receive only 18%, including a 4% hike implemented in April 2025. This 37% gap has triggered widespread dissatisfaction among over 10 lakh state government employees and pensioners, who argue that DA is essential to mitigate inflation and rising living expenses. 

Conclusion 

The Supreme Court’s directive to pay 25% DA is seen as a partial win for employees. The final verdict on full DA parity is expected in the next hearing slated for August. Meanwhile, the ruling puts pressure on the West Bengal government to act swiftly or risk further legal and political consequences. 

Read More: ITR Filing FY26: Is Dearness Allowance (DA) Taxable? 

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