Bengal Tells SC: ‘12 States Don’t Pay Dearness Allowance at Central Rate’

MP | 23 Sept 2025 | Kolkata : The West Bengal government has reportedly told the Supreme Court that at least 12 states across the country do not pay dearness allowance (DA) to government employees at the Central rate.

The state submitted a written note during the hearing of a long-running case on DA, which concluded on September 8, with judgment reserved. The court had asked all parties to file written submissions before the verdict.

In its affidavit, the Bengal government clarified that government employees in the state are not denied DA, but it is paid in accordance with the state’s financial capacity. Citing Article 309 of the Constitution, the government argued that each state has the authority to determine pay and allowances of its own employees and is not bound to adopt the Central government’s DA policy. The submission stressed that DA is not a fundamental right, and employees can only claim what is provided under state service rules or official notifications.

The Bengal government reportedly named Kerala, Chhattisgarh, Himachal Pradesh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Telangana, and Tripura as states that do not follow the Central DA formula. Significantly, barring Kerala and Karnataka, most of these are BJP-ruled or have BJP in coalition governments.

The state also pointed out that even in states where “Revision of Pay and Allowances” (ROPA) rules mention the Consumer Price Index (CPI), there are discrepancies in DA rates. It listed Chhattisgarh, Meghalaya, Himachal Pradesh, and Sikkim in this category.

The case originated when employees sought DA at Central rates, a demand that went before the State Administrative Tribunal (SAT) and later the Calcutta High Court. The SAT had directed Bengal to frame its own DA policy based on the All-India CPI, while the High Court observed that state employees were not entitled to Central rates.

Meanwhile, counsel for employees is reported to have said that a counter-submission would be filed. The court noted that employees’ lawyers had been given a week’s time. The Supreme Court is expected to deliver its verdict after examining both sides’ written arguments.