Government Employees Get Major Relief as DA Raised to 38%

In one of the most significant announcements of the West Bengal Budget 2026-27, the state government has approved a substantial increase in Dearness Allowance (DA) for government employees and pensioners. Finance Minister Dr. Swapan Dasgupta announced a 20 percentage-point hike in DA while presenting the Budget in the State Assembly on Monday, taking the total DA rate to 38 per cent. The decision is expected to benefit lakhs of serving employees and retired government personnel across the state.

The DA increase was among the headline measures unveiled in the BJP government’s first full Budget after assuming office in West Bengal. The move comes against the backdrop of a long-running debate over dearness allowance in the state and is being viewed as a major financial relief for employees facing rising living costs and inflation. The enhanced DA rate of 38 per cent marks one of the largest increases granted to state government employees in recent years.

The DA announcement formed part of a broader package of welfare and employment measures outlined in the Budget. Alongside the salary-related relief, the government announced plans to recruit one lakh personnel across various departments, including education and police services. Significant allocations were also made for social welfare programmes, women’s assistance schemes and infrastructure development.

Government employee organisations have long demanded higher dearness allowance to offset the impact of inflation and to narrow the gap between state and central government compensation structures. The latest announcement is expected to bring considerable relief to employees and pensioners who have been seeking revisions in DA rates for several years.

Apart from the DA hike, the Budget outlined an ambitious development agenda that includes welfare spending, employment generation, infrastructure expansion and measures to improve the ease of doing business in the state. With the increase in dearness allowance now approved, government employees and pensioners are set to be among the biggest beneficiaries of the 2026-27 Budget proposals.