Overview

• The Supreme Court issued an interim order requiring the West Bengal government to pay 25% of outstanding Dearness Allowance (DA) arrears to state employees within four weeks or three months.
• The financial burden for this payment is estimated at ₹12,000 crore, prompting the state to explore reallocating funds, including potential cuts to welfare schemes.
• The DA disparity stems from state employees receiving 18% DA compared to 55% for central government employees, with a 37% gap remaining despite recent hikes.
• This directive follows a prolonged legal battle initiated in 2022 when the Calcutta High Court ruled in favor of DA parity, a decision the state government appealed to the Supreme Court.
• The next Supreme Court hearing on the matter is scheduled for August 2025, where further decisions on the remaining arrears are expected.