DA Verdict: The Supreme Court issues a major directive, ordering payment of pending Dearness Allowance to West Bengal State Government employees.

New Delhi : The Supreme Court on Thursday dealt a major blow to the West Bengal State government in the Dearness Allowance (DA) case, directing it to clear all pending DA dues of state government employees along with arrears.. The bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra began delivering the verdict on the case around 10:30 a.m. on Thursday. During the hearing, the court clearly laid down its directions regarding DA. As per the court’s order, the state must pay 25 percent DA along with arrears by March 31. The remaining pending DA must be cleared by May 15.

State government employees have been protesting over DA for 1,106 days. Following today’s verdict, smiles lit up the faces of the employees. On this day, the two-judge bench also directed the formation of a committee. The committee, headed by former Justice Indu Malhotra, will oversee the entire matter and is required to submit its report by May 15.However, the Supreme Court has not yet determined whether Dearness Allowance is a fundamental right. Lawyer Firdaus Shamim said, “Today, the judges have delivered a historic verdict. The court has said that DA must be paid. The employees have won. Twenty-five percent DA along with arrears must be paid by March 31. A committee has also been constituted.”

At a Glance: Directions Issued by the Supreme Court

• The state must pay 25 percent Dearness Allowance (DA) by March 31.
• The first installment must be paid by March 6.
• All arrears pending since 2008, calculated as per the All India Price Index, must be cleared.
• The issue of granting DA twice a year has not been adjudicated.
• The Supreme Court has ordered the formation of a committee.
• The committee will be headed by former Justice Indu Malhotra. Other members include Gautam Badoria, Talak Singh Choudhary, and the Comptroller and Auditor General of India.
• The committee will examine the state government’s financial condition and assess whether it is feasible to grant DA twice a year.
• The committee must submit its report by May 15. The report must specify whether the state government has cleared the dues in a phased manner.

Another lawyer said, “Today, the judges have delivered a historic verdict. It is a victory for government employees. However, the Supreme Court has not accepted the demand for DA to be paid twice a year, nor has it clearly stated whether DA is a fundamental right. The court has constituted a committee comprising Indu Malhotra, Gautam Badoria, Talak Singh Choudhary, and the Comptroller and Auditor General of India. The committee will examine the state government’s repeated claims of financial distres ,what kind of financial crisis it is, and submit its report. The court has upheld that DA must be paid at par with the Central government rate.”

Background of the Case

From the very beginning, state government employees had been demanding that Dearness Allowance (DA) be paid at the same rate as that of Central government employees. The matter eventually reached the Supreme Court. In May 2025, in a case related to pending DA under the Fifth Pay Commission, the Supreme Court had directed the state government to pay 25 percent DA within a stipulated period of six weeks. According to the state government’s estimates, the total pending amount under this head stands at ₹40,000 crore. In compliance with the court’s order, the state was required to pay 25 percent of the dues, approximately ₹10,000 crore. However, the government failed to clear the amount and subsequently sought an additional six months’ time from the court.