Supreme Court Delivers Major Blow to West Bengal Government Over Unpaid Dearness Allowance to State Employees In a significant judicial intervention that brings relief to thousands of state government employees, the Supreme Court has issued a stern directive to the West Bengal administration, ordering the immediate release of pending dearness allowance dues that have remained unpaid for an extended period.
The apex court’s bench, comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra, has mandated that the state government must disburse 25 percent of the outstanding dearness allowance arrears to its employees by March 31, 2026. This ruling marks a crucial development in a legal battle that has been dragging on for nearly four years, leaving employees in financial distress.
Formation of Committee Ordered
Beyond the immediate payment directive, the Supreme Court has also instructed the West Bengal government to constitute a four-member committee tasked with formulating a comprehensive payment plan for the remaining 75 percent of the arrears. This committee will be responsible for determining realistic timelines and mechanisms through which the balance amount can be disbursed to eligible employees without further delays.
The judgment was delivered on a matter that had been reserved for consideration since August 2025, demonstrating the court’s careful deliberation on balancing the state’s financial constraints with employees’ rightful entitlements.
Background of the Legal Dispute
The controversy surrounding dearness allowance payments in West Bengal has a long and complicated history. The Confederation of State Government Employees, representing thousands of workers, initiated legal proceedings against the state administration over the non-payment of DA dues. What began as a straightforward demand for legitimate compensation has evolved into a protracted legal battle that has seen 18 adjournments since 2022.
The matter first gained judicial attention when the Calcutta High Court initiated contempt proceedings against the state government for failing to honor its obligations. The state subsequently challenged these contempt proceedings, leading to the case reaching the Supreme Court. Since then, the matter has witnessed numerous postponements, causing immense frustration among the employee community.
Previous Court Orders Ignored
This is not the first time the judiciary has intervened in this matter. On May 16, 2025, an interim order was issued by the Supreme Court, directing the West Bengal government to release 25 percent of the pending DA dues within a three-month timeframe. However, the state administration failed to comply with this directive within the stipulated period.
When questioned about the non-compliance, state government representatives cited severe financial difficulties and requested a six-month extension to arrange the necessary funds. The government’s legal team argued that the state treasury was under considerable strain and that meeting the payment deadline would create additional fiscal challenges.
Stark Disparity in DA Rates
One of the most contentious aspects of this dispute is the significant disparity between dearness allowance rates provided to central government employees and those working for the West Bengal state government. According to the state’s budget proposals implemented from April 1, 2025, DA for state employees stands at 18 percent of their basic salary.
This figure, however, creates an alarming gap of approximately 40 percent when compared to the dearness allowance extended to central government employees. In an era of rising inflation and increasing cost of living, this disparity has placed West Bengal’s state employees at a considerable disadvantage, affecting their purchasing power and overall financial stability.
Financial Constraints vs. Employee Rights
The West Bengal government’s defense has consistently centered around its financial limitations. Officials have maintained that the state’s revenue situation does not permit immediate large-scale disbursements, and that any hasty payment could destabilize other essential government functions and welfare schemes.
However, the Supreme Court’s firm stance indicates that financial difficulties cannot justify the indefinite denial of employees’ legitimate dues. The court’s decision emphasizes that state governments must prioritize their workforce’s compensation and cannot use budgetary constraints as a perpetual excuse for non-payment.
Impact on Employees
For the lakhs of state government employees who have been awaiting these arrears, the Supreme Court’s order comes as a long-awaited ray of hope. Many employees have reportedly faced personal financial crises due to the delayed payments, with some being forced to take loans or reduce household expenses significantly.
Employee unions have welcomed the judgment, calling it a vindication of their persistent struggle for justice. They have, however, emphasized the need for strict monitoring to ensure that the March 31 deadline is met and that the four-member committee functions effectively to resolve the remaining payment issues.
The Road Ahead
With the March 31 deadline now firmly established, the West Bengal government faces the immediate challenge of arranging funds and processing payments to eligible employees. Failure to comply with the Supreme Court’s order could result in contempt proceedings, further complicating the state’s legal position.
The formation and functioning of the four-member committee will be closely watched by all stakeholders, as it holds the key to resolving the larger issue of the remaining 75 percent arrears. The coming weeks will be crucial in determining whether this judicial intervention finally brings closure to a dispute that has tested the patience of state employees for far too long.