West Bengal Budget 2026-27: BJP raises DA by 20 points to 38% from October
Synopsis
West Bengal's BJP government used its first full Budget to deliver a 20-percentage-point DA hike — the largest single increase in recent memory for state employees — but even at 38 per cent, the rate remains 22 points behind central government levels, with a potential further widening expected when the Centre revises DA again in July.
Key Takeaways
West Bengal Finance Minister Swapan Dasgupta presented the 2026-27 Budget on 22 June in the West Bengal Assembly .
DA for state government employees raised by 20 percentage points — from 18% to 38% — effective 1 October .
Pension recipients will also receive an additional 20 per cent dearness relief .
Central government employees currently receive DA at 60 per cent , leaving a gap of 22 percentage points after the state hike.
Chief Minister Suvendu Adhikari indicated further DA increases and implementation of the latest pay commission by December .
The previous TMC government had announced only a 4-percentage-point DA increase in its February interim Budget.
West Bengal's Bharatiya Janata Party (BJP) government on Monday, 22 June announced a 20-percentage-point hike in dearness allowance (DA) for state government employees in its first full Budget, bringing the total DA rate to 38 per cent effective 1 October. State Finance Minister Swapan Dasgupta presented the 2026-27 Budget in the West Bengal Assembly, marking a significant departure from the previous government's approach to the long-contested DA issue.
What the Budget Announced
The existing DA rate of 18 per cent will be raised by an additional 20 percentage points, taking the revised rate to 38 per cent. The benefit extends to pension recipients as well, who will receive an equivalent 20 per cent dearness relief increase. Dasgupta said in the Budget document: 'The state government employees, semi-government employees, teachers and non-teaching staff play an important role in the implementation of the government's work and policies. To recognise their contribution, I am happy to announce that an additional 20 per cent dearness allowance will be given on top of the current 18 per cent dearness allowance.'
The Gap With Central Government Employees
Despite the hike, West Bengal state employees will still trail their central government counterparts significantly. Central government employees currently receive DA at 60 per cent — up from 58 per cent after the Centre's revision effective January this year — leaving a gap of 22 percentage points even after the state's revised rate kicks in. Notably, the central government is expected to announce another DA revision in July, which could widen this gap further before the state's increase takes effect in October.
What the Chief Minister Said
Chief Minister Suvendu Adhikari welcomed the Budget proposal and indicated it was a step in a longer journey. 'We will give an additional 20 per cent DA from the month of Durga Puja (October). The rest will be done gradually. Wait until another Budget. We will implement the latest pay commission by December,' Adhikari said.
Background: A Long-Running Dispute
The DA issue had been a flashpoint during the previous All India Trinamool Congress (TMC) government, triggering prolonged protests by sections of state government employees demanding parity with central rates and payment of pending arrears. The then Finance Minister Chandrima Bhattacharya had announced only a four-percentage-point DA increase in the interim Budget presented in February this year, while former Chief Minister Mamata Banerjee had maintained that paying DA at central rates was not mandatory, citing the state's financial constraints. A related case remains pending before the High Court.
Employee Reaction
Employee representatives broadly welcomed the announcement. Debashis Shil, an employee representative, said: 'Our DA has been increased from 18 to 38 per cent. Although it is being said that it will be effective from October, I think government employees will not object to receiving a 20 per cent increase in DA after three to four months. This is an unprecedented increase.' Swapan Mandal, General Secretary of the Bengali Teachers and Education Workers' Association, said the government was 'satisfied overall' but added: 'It would have been better if it had been implemented from July. We will appeal to the government to settle the remaining 22 per cent DA by December.' The BJP government has also begun the process of paying outstanding DA arrears, according to Budget documents.
Point of View
Organised voter bloc of state employees. But the arithmetic still leaves workers 22 points behind central rates, and a likely July revision from the Centre could push that gap to 24 or 26 points before October even arrives. The BJP has bought goodwill, but the structural problem — a state fiscal position that Mamata Banerjee herself cited to justify underpayment — has not disappeared. Whether Adhikari's promise of 'gradual' convergence survives the next Budget will be the real test.
NationPress
22 Jun 2026
Frequently Asked Questions
What DA increase did the West Bengal Budget 2026-27 announce?
The West Bengal BJP government announced a 20-percentage-point increase in dearness allowance, raising the rate from 18 per cent to 38 per cent for state government employees and pension recipients. The revised rate will take effect from 1 October.
How does West Bengal's DA compare to central government DA after the hike?
Even after the hike to 38 per cent, West Bengal state employees will trail central government employees, who currently receive DA at 60 per cent — a gap of 22 percentage points. The Centre is also expected to announce another DA revision in July, which could widen the gap further before October.
Why was DA a contentious issue in West Bengal?
Under the previous Trinamool Congress government, state employees had staged prolonged protests demanding DA parity with central government employees and payment of pending arrears. Former Chief Minister Mamata Banerjee had argued that paying DA at central rates was not mandatory, citing the state's financial constraints, and a related case remains pending before the High Court.
What did Chief Minister Suvendu Adhikari say about future DA increases?
Adhikari said the 20 per cent hike effective from October (Durga Puja) was a first step, and that further increases would follow gradually. He also indicated the government would implement the latest pay commission recommendations by December.
Who benefits from the DA hike announced in the West Bengal Budget?
State government employees, semi-government employees, teachers, non-teaching staff, and pension recipients all benefit from the revised DA and dearness relief respectively. The government has also begun paying outstanding DA arrears.
