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DA hike: West Bengal announces 4% dearness allowance increase for govt employees in interim budget

Alongside the DA hike, the government also announced a Rs 500 monthly increase for beneficiaries under the popular ‘Laxmi Bhandar’ scheme. The enhanced amount will come into effect from February.

February 05, 2026 / 23:33 IST
The Budget speech clarified that the DA hike will not take effect immediately, but will be implemented from the start of the next financial year, April 1.
Snapshot AI
  • West Bengal proposes 4% DA hike for state employees from April in interim Budget
  • Laxmi Bhandar scheme beneficiaries to get Rs 500 more monthly from February
  • Supreme Court orders state to clear 25 percent of pending DA arrears immediately

In a major announcement for state government employees, the West Bengal interim Budget on Thursday proposed a 4% increase in Dearness Allowance (DA). The interim Budget was presented by Finance Minister Chandrima Bhattacharya at around 2.30 pm.

Alongside the DA hike, the government also announced a Rs 500 monthly increase for beneficiaries under the popular ‘Laxmi Bhandar’ scheme. The enhanced amount will come into effect from February.

The Budget speech clarified that the DA hike will not take effect immediately, but will be implemented from the start of the next financial year, April 1. This means employees will receive the enhanced 4% DA along with their April salary.

Meanwhile, the Supreme Court on Wednesday reiterated that the West Bengal government must immediately clear 25% of pending DA arrears. A bench of Justices Sanjay Karol and Prashant Kumar Mishra directed the state to clear arrears pending since 2008, in line with the All India Price Index.

On the Supreme Court directing the West Bengal government to clear 25% DA (dearness allowance), Bhaskar Ghosh, Chief Convenor, Sangrami Joutha Mancha, said, ".The case has been going on for three years. This verdict also took four years. Better late than never. We want the state government to carry forward the SC judgement... There are 6 lakh vacant posts in various departments of the government, which have been lying vacant for the last 14 years. We want those positions to be filled..."

The state government has repeatedly maintained that DA payments should be made as per the Fifth Pay Commission, especially under the Revision of Pay and Allowances Rules.

Beyond employee-related announcements, the interim Budget also outlined major development plans. A ‘Cultural City’ will be developed in Baruipur, while six industrial and economic corridors will be set up across the state. The government also announced the creation of five new industrial parks for small, cottage, and medium industries.

In another key relief measure, the honorarium for ASHA workers has been increased by Rs 1,000.

*With Agency Inputs
Moneycontrol News
first published: Feb 5, 2026 04:17 pm

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