The Supreme Court has directed the West Bengal government to pay pending dearness allowance to its employees for the period 2008–2019, calling DA a legally enforceable right. The State has been ordered to release 25% of the arrears by March 6, with further payments to be monitored by a court-appointed committee.
The Supreme Court on Thursday made it clear that dearness allowance (DA) is a legally enforceable right of government employees and directed the West Bengal government to clear long-pending DA dues for its employees for the period between 2008 and 2019.
A Bench comprising Justices Sanjay Karol and Prashant Kumar Mishra ordered the West Bengal government to pay 25 per cent of the outstanding DA amount to its employees by March 6. The Court held that DA is not a discretionary benefit but a legal entitlement that employees can lawfully claim.
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While delivering the judgment, the Bench observed,
“To receive dearness allowance is a legally enforceable right that has accrued in favour of the respondents-employees of the State of West Bengal…The employees of the appellant-State shall be entitled to release of arrears in accordance with this judgment for the time 2008-2019,”
making it clear that the State cannot deny DA payments to its employees.
The Supreme Court explained that dearness allowance plays a crucial role in protecting employees from rising inflation and increasing cost of living. It said that DA is a practical tool used by a welfare state to shield its workforce from the impact of price rise and economic pressures.
The Court further emphasised that dearness allowance is meant to help employees maintain a basic standard of living and is not an extra or optional benefit provided by the government. It noted that failure to pay DA affects the livelihood and financial stability of employees.
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Taking into account the heavy financial burden involved in clearing the arrears, the Supreme Court constituted a high-level committee to oversee the payment process.
The committee will include former Supreme Court judge Justice Indu Malhotra, former Chief Justice or Judge of a High Court — Justices Tarlok Singh Chauhan and Goutam Bhaduri — and the Comptroller and Auditor General of India or the senior-most officer from his office nominated by him.
The apex court directed the committee to work in consultation with the West Bengal government to calculate the total amount payable, decide the payment schedule, and regularly verify whether the amounts are being released as directed.
The Court also fixed a timeline for further payments and said that the first instalment, subject to the committee’s determination, must be paid by March 31, 2026.
Clarifying the scope of the relief, the Bench stated,
“It stands clarified that those employees of the State who have retired in the pendency of this litigation shall also be entitled to benefits in accordance herewith,”
ensuring that retired employees are not excluded from receiving their dues.
The Supreme Court further directed the West Bengal government to file a status report after paying the first instalment and listed the matter for compliance hearing on April 15.
According to lawyers appearing in the matter, the total pending DA dues amount to nearly ₹41,000 crore, highlighting the massive financial obligation facing the State government.
The dispute began when a group of West Bengal government employees approached the Calcutta High Court, seeking DA at the same rate as central government employees along with payment of arrears. In May 2022, the High Court ruled in favour of the employees and directed the State government to match DA rates with those of the Centre.
Challenging this decision, the West Bengal government filed an appeal before the Supreme Court in November 2022. However, since then, the State has only announced small increases in DA, which have failed to bridge the wide gap between State and Central government DA rates.
As of April 2025, central government employees are receiving 55 per cent dearness allowance, while West Bengal government employees are getting only 18 per cent DA, despite a recent 4 per cent hike. The Supreme Court’s ruling is expected to bring long-awaited relief to thousands of serving and retired State government employees.
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