West Bengal Budget 2026 and DA Case Verdict: Big Updates on Pay Commission and Arrears

DA Case Verdict: For West Bengal government employees, today, February 5, 2026, is not just another date on the calendar. Millions of state employees, teachers, and pensioners have their eyes fixed simultaneously on the Supreme Court and the State Assembly. With the 2026 Assembly Elections just around the corner, today’s events are expected to significantly impact their financial future.

The significance of the day rests on three major pillars: the Supreme Court verdict, the State Budget presentation, and the potential announcement of a new Pay Commission.

High-Voltage DA Verdict in Supreme Court

After a prolonged legal battle, today marks a decisive moment in the Dearness Allowance (DA) case. The final hearing of this case concluded on September 8, 2025. After a wait of nearly six months, the verdict is scheduled to be announced today at 10:30 AM in Court Room Number 11. However, today’s judgment is not limited to the main DA case alone; it is intrinsically linked to a critical ‘Contempt of Court’ matter.

Context of the Contempt Case:

• Order to Clear Arrears: On May 16, 2025, the Supreme Court, in an interim order, directed the State Government to clear at least 25% of the employees’ accumulated DA arrears.
• Non-Compliance: The State Government failed to implement this directive within the stipulated timeframe. Consequently, three major employee organizations—the Confederation, Unity Forum, and Karmachari Parishad—filed contempt of court petitions.
• Today’s Expectation: Along with the verdict on the main DA lawsuit, judgments on these three contempt petitions are also expected to be delivered today, which could have serious implications for the state administration.

Good News in the Election Budget?

The State Budget is set to be presented in the Assembly today. With the 2026 Assembly Elections approaching, historical trends suggest that pre-election budgets often contain populist measures. Following this pattern, the Finance Minister may announce special benefits to address the grievances of government staff.

The primary expectation from this budget is the announcement of at least one installment of Dearness Allowance. It remains to be seen whether the government proactively announces a DA hike anticipating the court’s stance.

Possibility of a New Pay Commission

Beyond Dearness Allowance, there is a strong possibility of another major announcement in today’s budget. The government might announce the formation of a new Pay Commission to revise the salary structure of state employees. Since Pay Commissions are typically constituted every ten years, such an announcement in an election year would be seen as a significant move to woo the employee base.

In conclusion, amidst legal complexities and administrative decisions, today has created a “make or break” situation for West Bengal government employees. Between the recovery of DA arrears, the legal consequences of the contempt case, and the potential new Pay Commission, February 5, 2026, is poised to be a historic day.