In a significant relief for West Bengal government employees, the Supreme Court on Thursday directed the Mamata Banerjee-led state government to immediately release 25 per cent of the pending dearness allowance (DA) and ensure that the first instalment of the remaining arrears is paid by March 31.
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The ruling came from a division bench comprising Justice Sanjay Koral and Justice Prashant Kumar Mishra, which held that DA is not a discretionary grant but a legally enforceable entitlement.
Delivering the judgment, Justice Sanjay Koral underlined that DA is integral to employee remuneration and must be calculated using the All India Consumer Price Index (AICPI), as mandated under the RoPA Rules.
“To receive dearness allowance is a legally enforceable right that has accrued in favour of the respondents-employees of the state of West Bengal. Given its incorporation in RoPA Rules, the All India Consumer Price Index (AICPI) is the standard to be followed by the appellant- state of West Bengal for determination of ‘existing emoluments’,” Justice Koral said.
The bench also ordered the release of DA arrears for the period between 2008 and 2019.
Committee to calculate dues, monitor payments
To ensure transparency and compliance, the apex court constituted a four-member committee chaired by Justice (Retd) Indu Malhotra, with Justices (Retd) Tarlok Singh Chauhan and Gautam Bhaduri, along with the Comptroller and Auditor General of India or a senior official nominated in consultation with the state government.
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The committee will determine the total payable amount, finalise a payment schedule, and periodically verify disbursements. It has been asked to submit its recommendations by March 6, 2026, while a compliance report must be filed before the Supreme Court by April 15.
Explaining the rationale behind DA, Justice Koral stressed its role in protecting employees from inflation.
“Dearness allowance is designed to neutralise the impact of inflation. When the cost of essential goods increases, salaries that do not account for the same and remain in a bygone era, often fail to meet the basic needs, leading to a decline in living standards… Put differently, dearness allowance is not an additional benefit but a means to maintain a minimum standard of living,” he observed.
He further noted: “The concept of DA is a distinctly Indian response to the problem of inflation and its impact on wages, developed to safeguard employees against the steady erosion of their real income caused by price rises.”
Long legal battle dating back to 2008
The dispute traces its roots to 2008, when the then Left Front government constituted the Fifth Pay Commission, which recommended aligning DA payments with the central government’s practice of releasing two instalments every year. These recommendations were formalised in 2009.
However, delays in implementation led the Confederation of State Government Employees to approach the West Bengal Administrative Tribunal, which initially dismissed the plea in 2017. The Calcutta High Court overturned that decision in 2018, directing the state to frame norms and clear arrears—an order challenged by the Bengal government.
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The matter reached the Supreme Court, where the case saw 18 adjournments since 2022 after the state appealed against contempt proceedings initiated by the High Court.
Interim orders and delays
In an interim order dated May 16 last year, the Supreme Court had directed the state to pay 25 per cent DA within three months. The Mamata Banerjee government later sought a six-month extension, citing financial constraints.
An earlier bench of Justice Sanjay Karol and Justice Sandeep Mehta had passed the interim direction, temporarily ending the prolonged wait for employees.
Since April 1, 2025, DA for West Bengal government employees has been fixed at 18 per cent of basic pay, while the gap with central government employees stands at around 40 per cent.
Political reactions
Leader of the Opposition in the West Bengal Assembly Suvendu Adhikari welcomed the verdict, calling it a victory for employees’ rights.
“Mamata Banerjee has been proved wrong today. For years she claimed DA was not a right. The apex court has said DA is not a grant. Despite multiple legal battles which the employees won every time, the state government went on spending crores on hiring legal luminaries to deprive the employees,” he said.
