SC tells state to pay employees 25% DA dues in 3 months

Kolkata: The Supreme Court of India, on Friday, issued an interim order directing the West Bengal government to pay 25 per cent of Dearness Allowance (DA) dues (2006 to 2015) to its state government employees and pensioners within three months.

The 2009 Revised Ordinance on Pay and Allowances (ROPA) rules in West Bengal were set to be effective from January 1, 2006 as recommended by the Pay Commission.

The directive, issued by a bench comprising Justices Sanjay Karol and Sandeep Mehta, marks a significant step toward resolving the grievances of over 10 lakh state employees and pensioners. The matter is scheduled for further hearing in August 2025.

The dispute originated when state employees approached the Calcutta High Court in 2022, demanding DA equivalent to the 55 per cent provided to Central government employees.

In May 2022, the High Court ruled in their favour, ordering the state to align DA rates with the Central government’s. However, the West Bengal government challenged this decision in the Supreme Court in November 2022, citing financial constraints.

Despite incremental DA hikes, including a 4 per cent increase effective April 1, 2025, bringing the state’s DA to 18 per cent, a 37 per cent gap reportedly persists, fuelling widespread discontent.

Senior advocate Abhishek Manu Singhvi, representing the state, argued that paying the full arrears would strain West Bengal’s finances.

Initially, the court proposed a 50 per cent payment but reportedly reduced it to 25 per cent following Singhvi’s submissions. The Apex Court said that there was no error in the High Court’s ruling.

Dearness Allowance, a cost-of-living adjustment, helps employees cope with inflation.

This interim relief is expected to ease financial burdens for state employees, though unions continue to demand full parity.