DA Hike: Gap between Central and State Dearness Allowance to be eliminated! Government devises a major master plan

DA Hike: The West Bengal government aims to revise the salaries and allowances of its employees during the current financial year. The government intends to eliminate the disparity between the Central and State Dearness Allowance (DA) rates.

DA Hike News: The newly elected West Bengal government has set a goal to bring about significant changes to the salaries, allowances, and pensions of state government employees and pensioners. Led by Chief Minister Suvendu Adhikari, the government has initiated the formal process of implementing the recommendations of the 7th State Pay Commission (CPC) and bridging the DA gap with the Central Government within the current financial year (ending March 2027).

Narrowing the DA gap between Centre and State

Chief Minister Suvendu Adhikari announced this move while addressing an event on July 21. He stated that the ‘Terms of Reference’ (ToR) for the 7th CPC have been prepared, and the commission will be formally constituted once these are finalized. Adhikari mentioned that the government intends to implement the 7th CPC within the current financial year itself. The Chief Minister affirmed that Bengal is committed to narrowing the DA gap with the Centre but will focus on a gradual increase rather than a sudden hike.

What did CM Suvendu Adhikari say?

Regarding the DA, the Chief Minister stated, “We will gradually reduce the gap between the Centre and the State. Some of you might have expected us to announce a 42% DA all at once. There were even reports on social media suggesting we would announce a 10% hike. We did no such thing; we have calculated carefully and will narrow the gap gradually.” Last month, in its first budget after assuming power, the Bengal government raised the Dearness Allowance by 20%, bringing it to 38% of the basic salary.

What is the current gap?

Currently, Central Government employees receive 60% DA, whereas State Government employees were receiving only 18% prior to the new government’s budget. In its first budget, the new government increased this from the existing 18% by 20 percentage points, bringing it to 38%. Consequently, the gap between the Centre and the State has narrowed from 42% to just 22%. Efforts to bridge this remaining gap gradually are also underway.

Payment of outstanding arrears

The Chief Minister has also assured State Government employees that outstanding dues will be paid on time. Employee unions in West Bengal have long been demanding the payment of DA arrears and the constitution of a new pay commission. After coming to power in West Bengal, the new BJP-led government approved the formation of the 7th State Pay Commission in May.

On July 22, the State Government formally constituted a four-member panel headed by former Union Economic Affairs Secretary Atanu Chakraborty, tasking it with submitting recommendations within six months. This commission will make recommendations regarding changes to the salary structure, Dearness Allowance, promotion policy, pension, and retirement-related benefits.

Why does this gap exist?

While Central Government employees are benefiting from the 7th Pay Commission, West Bengal employees still fall under the rules of the 5th and 6th Pay Commissions. Now that the 8th Central Pay Commission is underway, the State Government’s… It states that it intends to gradually narrow the gap between the salaries and Dearness Allowance (DA) of its employees and those of Central Government employees.