The West Bengal government has announced a 20 percentage point increase in Dearness Allowance (DA) for state government employees, taking the total DA entitlement to 38%.

The announcement was made by Finance Minister Swapan Dasgupta while presenting the state budget, offering major relief to lakhs of government employees, teachers, non-teaching staff, semi-government employees and pensioners.

The revised DA will come into effect from October 1. At present, state government employees receive 18% DA.

With the latest increase, the allowance will rise to 38%, although a gap of 22 percentage points will remain when compared to the 60% DA currently received by Central government employees.

Explaining the decision, the Finance Minister said government employees play a critical role in implementing policies and ensuring the smooth functioning of the administration.

The DA hike, he said, reflects the government's commitment to supporting its workforce amid rising living costs.

Soon after the budget announcement, Chief Minister Suvendu Adhikari addressed the media and said the government would also move ahead with implementing the Seventh Pay Commission.

He stated that the additional DA would be credited during the Durga Puja season and assured employees that the remaining gap with Central government employees would be addressed in the coming months.

‘The difference between Central and state government employees' DA was 42%. Give us a few months, and we will make the DA at par,” the Chief Minister said, adding that the Seventh Pay Commission's final report is expected by December and its recommendations will be implemented from January next year.

The DA issue had remained a contentious subject in West Bengal for years. During the previous Trinamool Congress government, employee unions had staged prolonged protests demanding DA parity with Central government staff.

The matter also reached the Supreme Court, where related proceedings are still underway.

According to sources, every 1% increase in DA costs the state government around ₹64.25 crore per month.

Budget estimates show that West Bengal is expected to spend nearly ₹1.09 lakh crore this financial year on salaries, pensions and retirement benefits, around ₹10,045 crore more than the previous year.

Several employee organisations welcomed the announcement, calling it a significant step towards addressing long-standing concerns over pay and allowances, while also urging the government to clear pending DA arrears at the earliest.