In a major relief to nearly 10 lakh state government employees and pensioners, the Government of West Bengal has released a detailed Standard Operating Procedure (SOP) for the disbursal of pending Dearness Allowance (DA) arrears. Following the Supreme Court’s landmark verdict on February 5, 2026, Nabanna issued notifications (996-F/P2 and 997-F/P2) clarifying how the dues from the period of 2008 to 2019 will be settled.

Payment Schedule & Timeline: The government has decided to pay the arrears in two equal installments. The first tranche is mandated to be cleared by March 31, 2026, as per the court’s strict deadline. The second installment is scheduled for September 2026. The calculation is based on the AICPI (All India Consumer Price Index) as specified under ROPA 2009.

Modality of Disbursement: The SOP introduces different methods for various employee categories:

• Groups A, B, and C: Arrears for these employees will be credited to their respective General Provident Fund (GPF) accounts. This amount will remain locked and cannot be withdrawn for the next 24 months.
• Group D & Pensioners: In a significant move, Group D staff and retirees will receive their arrears in Cash, credited directly to their registered bank accounts.

Application Process: Serving employees do not need to apply manually. The Drawing and Disbursing Officers (DDOs) have been tasked to generate the bills automatically via the iFMS portal. For employees who retired or resigned between 2016 and 2019, the Pension Sanctioning Authority (PSA) will verify the service records to facilitate the transfer. The state’s move to issue the SOP just days before the first installment deadline is seen as a strategic step to comply with the apex court’s “Model Employer” directive while managing its fiscal commitments.