West Bengal Government Seeks Supreme Court's Permission to Settle 85% of DA Arrears in Phases

KalimNews, July 4, 2026, Kolkata : The West Bengal Government has submitted a status report before the Supreme Court in the long-pending Dearness Allowance (DA) case, seeking permission to settle 85 per cent of the outstanding DA arrears instead of paying the entire amount directed by the court.

According to the affidavit, the government has requested the Supreme Court to grant relief from paying the remaining 15 per cent, citing severe financial constraints on the state exchequer. The government has proposed to clear the arrears in four instalments by January 2028.

The matter was scheduled for hearing before the Supreme Court on Thursday. However, due to the constitution of a new Bench, the hearing did not take place as originally scheduled. Ahead of the hearing, the state government submitted an 88-page affidavit, which includes an 18-page status report detailing its proposed roadmap for clearing the arrears.

In its submission, the government stated that paying the entire DA arrears in one go would place an enormous financial burden on the state's finances. It argued that DA is intended to compensate employees for inflation and that complete neutralisation of price rise is not always financially feasible under the prevailing economic conditions.

The status report estimates that the total financial liability for clearing DA arrears from April 2008 to December 2019, based on 100 per cent AICPI neutralisation, would amount to approximately ₹11,983 crore.

According to the government's proposed payment schedule, the first instalment of ₹7,771 crore has already been released. The second instalment is planned for January 2027, the third for July 2027, and the final instalment for January 2028.

The affidavit also explains that calculating the arrears is a highly complex process. Individual calculations have to be carried out for nearly 141 months for every eligible employee and pensioner. Data is being collected from 90 treasuries across the state, while different departments have separate pay structures requiring individual verification.

The government further informed the court that salary records prior to 2016 were not available in digital form and are being converted from physical service books into electronic records. To speed up the process, a dedicated portal has been created, and e-Service Books are being prepared for approximately 1.34 lakh government employees whose arrears remain pending. The affidavit also includes an important update for employees of Grant-in-Aid institutions. Although the Supreme Court's earlier judgment did not directly cover these institutions, the state government has informed the court that, in the interest of maintaining parity, it has decided to extend the benefit of DA arrears to eligible Grant-in-Aid employees as well.

A government order referred to in the status report formally records this decision before the Supreme Court, offering fresh hope to thousands of employees working in Grant-in-Aid institutions.

The estimated financial allocation has been divided into different categories. Approximately ₹5,184 crore has been earmarked towards arrears for serving employees for the period 2016–2019, while ₹2,275 crore has been estimated for pensioners receiving pensions through the treasury during the same period. For 2008–2015, the estimated liability stands at ₹3,050 crore for serving employees and ₹1,174 crore for pensioners.

The government has also highlighted ongoing efforts to digitise service records through the West Bengal Integrated Financial Management System (WBIFMS). Officials believe that once the digitisation process is completed, the calculation and disbursement of arrears will become significantly faster and more efficient.

Earlier, the government had announced the formation of the Seventh Pay Commission, fulfilling one of its major commitments regarding the review of salaries, allowances, Dearness Allowance and other service benefits of state government employees. The commission has been tasked with examining the existing pay structure and recommending revisions in line with the new salary framework.

On the issue of DA, senior political leader Suvendu Adhikari had earlier stated that the gap between the Centre and the State in DA payments would be reduced gradually. He maintained that the government had adopted a calculated and financially sustainable approach and assured employees that further adjustments would be made in the future.

Meanwhile, counsel representing a section of the state government employees before the Supreme Court observed that while the state has the legal right to seek relief from the court, the employees continue to demand that 100 per cent of the DA arrears be paid at the earliest, in accordance with the Supreme Court's directions.

The Supreme Court is expected to consider the state's request for partial relief and phased payment of arrears once the matter is taken up by the newly constituted Bench.

Note: This article is based on the information provided in the submitted affidavit and related reports. The government's request to pay 85% of the arrears instead of 100% will take effect only if permitted by the Supreme Court.