The Supreme Court of India.
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New Delhi: Observing that dearness allowance is a legally enforceable right, the Supreme Court on Thursday directed the West Bengal government to pay it to its employees for the 2008 to 2019 period.
A bench of Justices Sanjay Karol and Prashant Kumar Mishra directed the West Bengal government to pay 25 per cent of the outstanding DA to its employees by March 6.
"To receive dearness allowance is a legally enforceable right that has accrued in favour of the respondents-employees of the State of West Bengal...The employees of the appellant-State shall be entitled to release of arrears in accordance with this judgment for the time 2008-2019," the bench said.
The top court said dearness allowance emerges as a practical instrument of protection in the hands of the welfare state, which safeguards its employees from the adverse effects of rising prices.
Dearness Allowance is not an additional benefit but a means to maintain a minimum standard of living, it said.
Considering the financial implications involved, it also constituted a committee comprising former apex court judge Justice Indu Malhotra, former Chief Justice/Judge of High Court -- Justices Tarlok Singh Chauhan and Goutam Bhaduri -- and Comptroller and Auditor General of India or senior most officer in his establishment, nominated by him.
The apex court directed the committee in consultation with the State authorities to determine the total amount to be paid, schedule of payments and periodically verify the release of the amounts.
The payment of the first instalment, subject to the determination of the Committee should be paid by March 31, 2026, it said.
"It stands clarified that those employees of the State who have retired in the pendency of this litigation shall also be entitled to benefits in accordance herewith," the bench said.
The apex court directed the state government to file a status report after payment of first instalment and posted the matter for compliance on April 15.
The total outstanding DA dues, according to lawyers, is around 41,000 crore.
The controversy began when a section of West Bengal government employees approached the Calcutta High Court, demanding DA at the same rate as their central government counterparts, along with pending arrears.
In May 2022, the high court ruled in favour of the employees and instructed the state to align its DA with central rates.
However, the West Bengal government challenged the high court's verdict by filing an appeal in the Supreme Court in November 2022.
Since then, the state has implemented only marginal increases in DA, which have not kept pace with the central government's rates.
As of April 2025, while central government employees receive 55 per cent DA, their West Bengal counterparts get only 18 per cent notwithstanding a recent 4 per cent hike.