Ending a decade-long legal battle and administrative deadlock, the West Bengal government has officially commenced the process of releasing the first installment of pending Dearness Allowance (DA) arrears. Following the Supreme Court’s February 2026 directive, the state’s Finance Department has cleared the path for the disbursal of nearly ₹10,000 crore, bringing much-needed relief to over 9 lakh state employees and pensioners.

Who is Eligible and What are the Modalities? As per the recent notification (996-F(P2)), the government will clear the 25% of DA arrears accumulated between 2008 and 2019 in a phased manner. The first phase covers the period from January 2016 to December 2019. The payment method varies by employee category:

• Group-D Employees: Arrears will be credited directly in cash into their respective bank accounts.
• Group A, B, and C Employees: The amount will be deposited into their General Provident Fund (GPF) accounts with a 24-month lock-in period.
• Pensioners: Arrears will be credited directly to their pension accounts as Dearness Relief (DR).

Calculating the Amount: The arrears are being calculated based on the All-India Consumer Price Index (AICPI). Employees can estimate their dues by comparing the DA they actually received against the central rates mandated by the court for that specific period. For instance, the first installment released this March constitutes 50% of the first phase’s total calculated arrears. Several online “WB DA Arrears Calculators” have surfaced to help employees find their exact figures.

Timelines to Watch: The Finance Department has instructed Treasuries and PAOs to process the arrear bills along with the March 2026 salaries. While the first installment arrives now, the second installment of this phase is scheduled for September 2026. While the opposition calls it a “poll gimmick” ahead of the assembly elections, the employees view it as a hard-won victory after years of agitation on the streets and in courts.