The West Bengal government has announced a 20 percentage point increase in Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners. The announcement was made in the state’s first full Budget under the newly elected BJP government.
The revised DA and DR rates will become effective from October 1, 2026, increasing the allowance to 38% of basic salary.
DA Increased to 38%
Under the new announcement:
| Particular | Before Hike | After Hike |
|---|---|---|
| Dearness Allowance (DA) / Dearness Relief (DR) | 18% | 38% |
| Increase | — | 20 percentage points |
| Effective Date | — | October 1, 2026 |
The revision is expected to benefit lakhs of serving government employees and pensioners across the state.
Gap With Central Government DA Narrows
West Bengal employees currently receive salaries under the 5th and 6th State Pay Commission structures, while Central Government employees are covered under the 7th Central Pay Commission.
As a result, the DA gap had widened significantly over time.
Following the latest increase:
- The DA gap with Central Government employees has reduced by 22 percentage points.
- The difference has narrowed from 42 percentage points earlier.
The move is intended to provide relief amid rising inflation and higher living costs.
7th State Pay Commission Underway
The DA announcement follows the state’s earlier decision to establish the 7th State Pay Commission.
The commission will review:
- Employee salaries
- Dearness Allowance
- Pension benefits
- Service conditions
- Other allowances
Its recommendations are expected to cover:
- State government employees
- Pensioners
- Government-aided institutions
- Local bodies
- Statutory organisations
- Educational institutions
The government has also indicated that discussions with employee representatives on pay-related concerns are ongoing.
Other Major Budget Announcements
Alongside the DA hike, the government announced several other initiatives.
Key Measures
- One lakh government vacancies to be filled.
- Continued funding for welfare programmes.
- ₹36,000 crore allocated for the Annapurna Yojana.
These measures reflect the government’s emphasis on employee welfare, employment generation, and social welfare spending.
Key Highlights
- 20 percentage point DA and DR increase announced.
- DA will rise to 38% of basic salary.
- Effective from October 1, 2026.
- DA gap with Central Government employees narrows substantially.
- 7th State Pay Commission to review future salary revisions.
- Government also plans to fill 1 lakh vacancies and continue major welfare schemes.
Conclusion
The 20% increase in Dearness Allowance and Dearness Relief marks one of the most significant compensation announcements for West Bengal government employees and pensioners in recent years. Combined with the formation of the 7th State Pay Commission and ongoing recruitment plans, the move represents a broader effort to strengthen employee compensation while reducing the gap between state and central government pay structures.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.
