Supreme Court Grants Relief to West Bengal State Employees in DA Dispute

In a landmark ruling, the Supreme Court has ordered the West Bengal government to pay pending dearness allowance (DA) arrears to nearly 20 lakh state employees. The court emphasized the legal entitlement of DA, mandating payment from 2008-2019 and forming a committee for disbursement supervision.

The Supreme Court delivered a significant judgment on Thursday in the long-standing dearness allowance (DA) dispute involving the West Bengal government and its employees. Nearly 20 lakh state government employees received a major relief as the court upheld their right to DA and directed the state to clear arrears from 2008 to 2019.

A bench of Justices Sanjay Karol and Prashant Kumar Mishra reiterated that DA is a legally enforceable right for employees, ordering the state to release at least 25% of the outstanding amount as per a previous interim order. The court clarified that amounts disbursed will not be reclaimed even with legal changes.

To ensure efficient disbursement, the court established a committee led by former Supreme Court judge Justice Indu Malhotra, joined by former High Court judges and the Comptroller and Auditor General of India. The committee will determine total dues, create a structured payment schedule, and monitor fund releases, with the first payment due by March 31, 2026.

The matter is scheduled for review on April 15, 2026, when the West Bengal government is expected to report on the committee's findings and payment status. The ruling followed appeals against a 2022 Calcutta High Court decision affirming the entitlement to DA, which the state contested citing financial constraints.

The West Bengal Employees Confederation had long demanded DA arrears alignment with the All-India Consumer Price Index. The legal journey began after the state's prolonged failure to revise DA prompted the employees to seek justice from the State Administrative Tribunal and the Calcutta High Court, which both ruled in favor of the employees.

(With inputs from agencies.)