Dearness allowance: Here’s why 20% DA hike is significant for West Bengal state govt employees

Dearness allowance: West Bengal's 20% hike in dearness allowance and dearness relief was a significant relief for state government employees and retired pensioners as it reduced the salary gap for them compared to peers in the Centre and other states.

The announcement in the state assembly by West Bengal Finance Minister Swapan Dasgupta on 22 June (Monday). It was part of the state's newly elected Bharatiya Janata Party (BJP) government's maiden full budget.

Earlier, addressing a preparatory meeting for the BJP's special training camp, West Bengal Chief Minister Suvendu Adhikari had assured that DA would be announced in the state Budget.

Here’s why the 20% DA hike is significant for West Bengal state government employees and pensioners…

Why is the DA, HR hike significant?

The 20% hike in DA and DR, effect from 1 October 2026 increases each component to 38% of basic salary for West Bengal state government employees and pensioners.

While West Bengal state employees and pensioners are still covered by the 5th Central Pay Commission (CPC) and 6th CPC, which have much lower salaries, in comparison, central government employees and pensioners are covered by the 7th CPC, which offers a different pay structure and increases pay.

Further, with the 8th CPC underway, there are also concerns that the salary gap will widen even more.

Notably, in a relief, Monday's announcement narrows the gap between the DA received by state government employees and their central government counterparts by 22 percentage points — a significant improvement. This is down from the previous gap of 42 percentage points between the two.

More DA hikes on the way for Bengal employees?

Notably, CM Adhikari has also committed to implementing the 7th pay commission recommendations by January 2027, Bhaskar Ghosh, convenor of the Joint Struggle Forum of State Government Employees told reporters earlier this month.

“The chief minister has assured us that the DA gap with the Centre will be bridged in phases. We expect a major announcement on this issue in the state budget on 22 June,” Ghosh told reporters on 1 June.

“Issues relating to pay disparities among state government employees, including temporary staff, were also discussed during the meeting. The chief minister himself proposed that regular meetings be held between the state government and employees' organisations. A framework for such consultations is being worked out,” Ghosh added.

DA hike: 7th state pay commission formed

Earlier in May, the state government approved formation of the 7th state pay commission to decide salary and DA hikes for state government employees, educational institutions, government corporation, board staff and state government-aided bodies. The decision was made at a Cabinet meeting on 18 May, chaired by Adhikari at Nabanna, the West Bengal state secretariat.

According to the state Women, Child and Social Welfare Minister Agnimitra, the state's 7th pay commission will consider an upward revision of salaries of employees. She added that the scope of a pay hike would also extend to staff of statutory entities such as civic bodies, local bodies and education boards, as well as those working in state-run education institutions, as per another PTI report.

West Bengal to implement Supreme Court's DA order

The West Bengal employees' forum has stated that Adhikari has assured them that the state government will implement the Supreme Court's order on payment of DA dues, as per another PTI report.

Leaders of the Joint Struggle Forum of State Government Employees on 1 June told reporters that during a meeting, the CM assured them the apex court's orders would be implemented, the report added.

Notably, the SC, in a judgement delivered in February this year, noted that DA is a legally enforceable right and directed the West Bengal government to pay thearrears of its employees' dues for the period between 2008 and 2019.