DA Hike: Good news for millions of government employees in West Bengal! The Supreme Court has ordered the Mamata government to pay a 25% Dearness Allowance (DA) to state employees. Justices Sanjay Karol and Sandeep Mehta issued an interim order for the state government to pay the pending DA from 2009 to 2019 within three months.
Impact on the state treasury
This decision will place an additional burden of ₹10,000 crore on the state’s treasury, as the total DA arrears amount to ₹41,000 crore. Over 6 lakh employees will benefit from this decision. However, even after this increase, there is still a 30% gap in the DA between central and state government employees, as central employees will receive 55% DA from January 2025.
4% DA Hike in Bengal for 2025 | DA Hike
Earlier, in February 2025, Mamata Banerjee’s government had presented a budget of ₹3.89 lakh crore for the financial year 2025-26, which included a 4% increase in DA for the state’s 10 lakh employees and pensioners. This increased the DA rate from 14% to 18%. The finance department issued orders in March 2025 for this hike, but now the Supreme Court has ordered an increase to 25%.
DA gap remains between central and state employees
Despite this hike, the gap in DA between central and state employees is still 30%. In 2022, the Calcutta High Court had directed the Bengal government to provide DA similar to the central government’s rate. However, in November 2022, the Bengal government challenged this decision in the Supreme Court (DA Hike), arguing that it could not provide DA equal to that of the central government.
Next hearing in August
Now, the Supreme Court has ordered the Bengal government to pay the DA arrears within three months. The next hearing on this matter will be in August. While this decision will provide relief to millions of employees, the gap in DA between central and state government employees will still remain.
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