Supreme Court Ruling: West Bengal Government Must Settle Employee DA Dues from 2008 to 2019

The Supreme Court has directed the West Bengal government to pay dearness allowance arrears to its employees for the period from 2008 to 2019, holding that DA is a legally enforceable right aimed at protecting employees from rising living costs, as per PTI reports. 

Supreme Court Ruling on Dearness Allowance 

On February 6, 2026, a bench comprising Justices Sanjay Karol and Prashant Kumar Mishra ruled that dearness allowance is not an additional benefit but a mechanism to maintain a minimum standard of living.  

The court stated that the right to receive DA has accrued in favour of employees of the State of West Bengal. 

Payment Timeline and Initial Release 

The court directed the West Bengal government to pay 25% of the outstanding DA arrears to employees by March 6, 2026. It further stated that arrears for the entire 2008 to 2019 period must be released in accordance with the judgment. 

Committee Formed to Oversee Payments 

Considering the financial implications, the court constituted a committee to determine the total payable amount, payment schedule and verification process.  

The committee includes former Supreme Court judge Justice Indu Malhotra, former High Court judges Justices Tarlok Singh Chauhan and Goutam Bhaduri, along with the Comptroller and Auditor General of India or a nominated senior official. 

Installments and Compliance Reporting 

The court directed that the first instalment, subject to the committee’s determination, must be paid by March 31, 2026. The state government has also been asked to file a status report after the first payment. The matter has been listed for compliance on April 15,2026. 

The judgment clarified that state government employees who retired during the pendency of the litigation will also be entitled to DA arrears for the relevant period. 

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Background of the DA Dispute 

The dispute originated when a section of West Bengal government employees approached the Calcutta High Court seeking DA parity with central government employees. In May 2022, the High Court ruled in favour of the employees. The state government challenged this order in November 2022. 

As of April 2025, central government employees receive 55% DA, while West Bengal government employees receive 18% DA, despite a recent 4% increase. Total outstanding DA dues are estimated at around ₹41,000 crore. 

Conclusion 

The Supreme Court’s directions outline a structured mechanism for releasing long pending DA arrears, with defined timelines, oversight and coverage for both serving and retired employees. 

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