The West Bengal government has constituted the 7th Pay Commission for state government employees and staff of state-aided institutions, fulfilling a key pre-election promise to set up the panel within six months of assuming office.
The four-member Commission will be headed by retired IAS officer Atanu Chakraborty, former secretary, Department of Economic Affairs, Ministry of Finance. Other members include economist Partha Mukhopadhyay, professor Partha Pratim Pal of IIM Calcutta, and Finance Department Secretary Devi Prasad Karanam as member secretary.
The Commission has been tasked with reviewing pay, allowances and other service benefits for government employees. It will also recommend measures to make public-sector employment more attractive and competitive, with a focus on attracting and retaining talent in government service.
The panel has been asked to submit its recommendations within six months, with the government targeting implementation of the revised pay structure from April 2027.
Officials, however, acknowledged that implementing the recommendations could significantly increase the state’s salary bill. West Bengal currently spends around Rs 70,000 crore annually on employee salaries and another Rs 26,000 crore on pensions. Estimates suggest that the revised pay structure could increase basic salaries by more than two times, adding considerable pressure to the state exchequer.
Employee representatives have also pointed to the dearness allowance (DA) gap between the Centre and the state. While the Centre currently provides 60 per cent DA, West Bengal employees receive 18 per cent, with the government having announced a further 20 per cent increase to be implemented later this year, taking the total to 38 per cent.
The formation of the Commission signals the government’s intent to overhaul compensation for state employees while balancing fiscal sustainability and talent attraction in the public sector.
