The West Bengal government has announced a major relief for lakhs of state government employees and pensioners by increasing Dearness Allowance (DA) and Dearness Relief (DR) by 20 percentage points. The hike, announced in the state's maiden full Budget by the newly elected BJP government, will come into effect from October 1, 2026.
With this increase, the DA and DR payable to state government employees and pensioners will rise to 38% of their basic salary. The move is being viewed as a significant step toward reducing the long-standing pay disparity between West Bengal government employees and their counterparts in the central government.
The DA hike is particularly significant because West Bengal employees are still governed by the 5th and 6th Pay Commission structures, while central government employees receive salaries and allowances under the 7th Central Pay Commission.
As a result, the gap between the DA received by state and central government employees had widened considerably over the years. The latest announcement reduces this gap by 22 percentage points, bringing it down from 42 percentage points earlier.
The decision is expected to provide substantial financial relief to employees and pensioners amid rising living costs and inflationary pressures.
The DA increase comes alongside broader efforts to reform employee compensation in the state. Earlier this year, the West Bengal Cabinet approved the formation of the 7th State Pay Commission to review salaries, allowances, and service benefits for government employees and pensioners.
The commission will also examine pay structures for staff working in government-aided institutions, statutory bodies, local authorities, and educational institutions. Employee representatives have indicated that the state government is also discussing pay disparities and workforce-related concerns through a structured consultation process.
Apart from the DA hike, the state government announced plans to fill one lakh government vacancies. It also confirmed the continuation of major welfare initiatives, including the Annapurna Yojana, which has been allocated ₹36,000 crore in the Budget.
These measures signal the government's focus on balancing employee welfare, job creation, and social spending.
The 20% DA and DR hike marks one of the biggest pay-related announcements for West Bengal government employees in recent years. Along with the proposed implementation of the 7th Pay Commission recommendations and the formation of a new state pay panel, the move reflects a broader effort to improve employee compensation and narrow the gap with central government pay structures.
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Published on: Jun 22, 2026, 2:02 PM IST
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