West Bengal eyes 7th Pay Commission rollout, promises more DA hikes

The West Bengal government has said it is aiming to implement the 7th State Pay Commission (CPC) within the current financial year.

It is also gradually narrowing the dearness allowance (DA) gap between state and central government employees.

The announcement could be significant for millions of state government employees and pensioners, who have long demanded higher salaries, better DA and payment of pending arrears.

Speaking at an event on July 21, Chief Minister Suvendu Adhikari said the government had already prepared the terms of reference (ToR) for the 7th Pay Commission. Once finalised, the commission would be formally constituted.

He also reiterated the government’s commitment to bridging the DA gap with the Centre in phases rather than through a single large increase.

The remarks come a month after the state government announced a 20-percentage-point increase in DA in its first Budget after assuming office.

The chief minister said the government is working towards implementing the 7th State Pay Commission during the current financial year. Besides revising salaries, the government also plans to reduce the gap in DA between state and central government employees and clear pending arrears over time.

According to the chief minister, the government has adopted a phased approach to DA revisions after assessing the state’s financial position. He said the intention is to gradually bring state employees closer to the DA levels enjoyed by central government employees instead of announcing a sharp increase at one time.

He also assured employees that pending dues would be paid.

Why this matters for employees

The announcement is important because West Bengal government employees have been seeking higher DA and a new pay commission for several years.

Unlike central government employees, who are covered under the 7th Central Pay Commission, many West Bengal government employees continue to receive salaries under older state pay structures. This has resulted in a significant difference in pay and allowances between state and central government staff.

A new pay commission generally reviews:

• Basic salary structure

• Dearness allowance

• Pension-related benefits

• Other service allowances

If implemented, the 7th State Pay Commission could lead to higher salaries and revised retirement benefits for eligible employees, although the exact increase will depend on the commission’s recommendations and the government’s final approval.

In June, the West Bengal government raised DA by 20 percentage points, taking it to 38 per cent of basic pay.

The increase reduced the gap between the DA paid by the state government and that paid to central government employees. However, the difference has not been eliminated.

The chief minister said some employees had expected a much larger increase in one go, but the government chose a gradual approach after considering the state’s finances.

This means employees may see further DA revisions in future instead of a single large hike.

Apart from salary revision, payment of pending DA arrears has remained one of the biggest demands of employee organisations in the state.

The chief minister said the government intends to clear pending dues and assured employees that arrears would be paid in due course.

However, no detailed timeline has been announced for releasing the arrears.

Although the two are often discussed together, they serve different purposes.

Dearness allowance (DA) is paid to compensate employees and pensioners for the impact of inflation. It is revised periodically and is calculated as a percentage of basic pay.

A pay commission, on the other hand, undertakes a broader review of government salaries and service conditions. It recommends changes to pay scales, allowances, pensions and other employee benefits.

In simple terms, DA revisions help employees keep pace with rising prices, while a pay commission can reshape the overall salary structure.

The state Cabinet had earlier approved the formation of the 7th State Pay Commission in May.

According to the government, the commission will examine revisions in salaries for state government employees. Its scope is also expected to cover employees of statutory bodies, local authorities, civic bodies, education boards and staff working in state-run educational institutions.

Once formally constituted, the commission will study the existing pay structure, consult stakeholders and submit its recommendations to the state government.

While the government’s announcement signals its intent, employees will need to wait for several key developments before any revised salaries are credited.

These include:

• Formal notification constituting the 7th State Pay Commission

• Publication of its terms of reference

• Submission of the commission’s recommendations

• Government approval of the recommendations

• Notification of revised pay scales, DA and arrears

For now, the government’s assurance indicates that salary revision, gradual DA parity with the Centre and settlement of pending dues remain among its priorities during the current financial year.