A bench of the apex court reiterated its earlier interim order, underscoring that the state must comply with the payment deadline. To ensure an orderly and financially viable rollout, the court constituted a high-level committee headed by former Supreme Court judge Justice Indu Malhotra. The panel has been tasked with calculating the exact arrears and finalising a practical payment schedule, with a report due by March 6, 2026.
The ruling addresses a long-running dispute between the West Bengal government and its employees over DA parity with central government staff. While central employees currently receive DA at 55 per cent, West Bengal employees are paid 18 per cent, despite a recent 4 per cent hike announced by Chief Minister Mamata Banerjee, effective April 1. The wide gap has been a persistent source of contention, triggering protests and prolonged litigation.
During the hearing, senior advocate Abhishek Manu Singhvi, appearing for the state, submitted that an earlier proposal to clear 50 per cent of the arrears would severely strain the state’s finances. Taking note of these concerns, the court scaled down the immediate payment requirement to 25 per cent, while maintaining that the remaining dues must be settled through a structured plan.
The legal battle dates back to a Calcutta High Court judgment in May 2022, which held that DA is not a discretionary benefit but a rightful component of salary under the state’s pay revision rules (ROPA 2009), aligned with the 5th Pay Commission recommendations. The High Court had directed the state to pay DA at 31 per cent, prompting the government to challenge the order in the Supreme Court. The case saw multiple adjournments before the apex court issued its interim direction in May 2025, followed by Tuesday’s reaffirmation.
DA is designed to offset the impact of inflation and is linked to movements in the All India Consumer Price Index. The Supreme Court’s latest order is expected to have significant fiscal and administrative implications for the state, while setting a clear precedent on employees’ entitlement to DA. The committee’s findings will determine the roadmap for clearing the remaining arrears, with compliance closely monitored.
