The BJP government in West Bengal on Monday presented its maiden budget, announcing a 20% increase in dearness allowance (DA) and dearness relief (DR) for state government employees and pensioners, according to a PTI report.
The move reduces the gap between the dearness allowance received by West Bengal government workers and central government employees by 22 percentage points. This issue had been a long-standing demand of state employees, who had repeatedly sought DA parity with their central government counterparts under the previous regime.
The latest hike effectively increases to 38% of basic salary for West Bengal state government employees and pensioners, the news report added.
When will West Bengal DA hike be implemented?
The increased DA will be implemented with effect from October 1, 2026, according to the PTI report.
This means state government employees and pensioners will start receiving the revised DA rate from that date, bringing their allowance closer to the levels enjoyed by central government employees.
What is DA and is it taxable?
Dearness allowance is a salary component paid to central government employees, state government employees (where applicable), public sector staff, defence personnel, bank employees and pensioners, to offset the impact of inflation and rising living costs.
It is calculated as a percentage of the basic salary and revised twice a year based on the Consumer Price Index (CPI). DA is fully taxable and subject to income tax at the applicable slab rate.
Why has the DA issue been a long-standing demand in West Bengal?
While central government employees and pensioners are currently covered under the 7th Central Pay Commission (CPC), employees and pensioners are still covered under the older 5th and 6th CPC, resulting in a major difference in overall pay and allowances.
Now, with the 8th CPC underway, there are concerns that the salary gap will widen even more.
The latest announcement in DA hike narrows the gap between the DA received by state government employees and their central government counterparts by 22 percentage points, which is 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 workers?
In addition to the enhanced DA relief, Bengal Chief Minister 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.
“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 was quoted as saying by the news agency.
Alongside DA hike announcement, the West Bengal government also announced the filling of 1 lakh government vacancies and a ₹36,000-crore outlay for the financial assistance scheme for women, Annapurna Yojana. For women, the state government has also allocated ₹550 crore towards the free bus scheme, along with granting women a ‘Pink Card’.