7th Pay Commission: The process of restructuring pay and allowances for West Bengal’s state government employees and pensioners has entered a new phase. Following the Union Cabinet’s move on the 8th Central Pay Commission, the West Bengal Cabinet, chaired by the Chief Minister, gave in-principle approval on 18th May, 2026 to constitute the 7th State Pay Commission. Soon after, an important document surfaced, a charter of demands concerning the Commission’s Terms of Reference (ToR), covering everything from how the minimum wage should be calculated to retirement benefits. How much of this charter makes it into the final, official ToR will shape the pay structure of lakhs of state employees and pensioners. Here’s a detailed look at what the charter proposes.
Table of Contents
Three Major Changes Proposed for Minimum Wage and the Pay Matrix
The foundation of any pay structure is how the minimum wage is calculated. The charter proposes three key changes here:
- Larger family unit: Earlier pay commissions calculated minimum pay based on a 3.5-unit family. The charter asks for this to be raised to 5 units.
- Updated calorie standard: Minimum pay has traditionally been calculated using the 1957 Dr. Wallace Aykroyd benchmark of 2,700 calories a day. The charter recommends switching to the ICMR-endorsed standard of 3,490 calories.
- Higher annual increment: Instead of the long-standing 3% annual increment, the charter calls for at least 5%, to better reflect the pace of inflation while redesigning the pay matrix.
Parity With Central Pay Levels and Dearness Allowance
The charter seeks alignment between West Bengal’s pay levels and those of the Central Pay Commission — including merging non-viable pay levels — to achieve all-India equivalency and avoid unnecessary litigation. On Dearness Allowance (DA), it asks that DA be calculated strictly as per AICPI/CPI-IW, that the current disparity in DA disbursal for employees at the Chennai Youth Hostel and Banga Bhawan be ended, and that a Standing Order be issued to fix DA permanently in line with AICPI.
Effective Date and Fitment Factor
The document explicitly asks that the 7th Pay Commission take effect actually — not merely notionally — from 1st January, 2026, and that the fitment factor be determined after a 100% merger of DA with basic pay, in line with the approach expected under the 8th Central Pay Commission.
Key Demands on Allowances
- Review of House Rent Allowance (HRA) for X, Y and Z tier cities, and of Transport Allowance, in line with the Central Pay Commission.
- Removal of the upper cap on HRA for employees whose spouse also draws HRA while employed with the Centre, a Union Territory, another state, or a private employer.
- Children’s Education Allowance (CEA) and hostel subsidy to be brought at par with Central rates.
- A broader review and rationalisation of all other existing allowances.
Current vs Proposed: At a Glance
| Parameter | Current Norm | Proposed in the Charter |
|---|---|---|
| Family unit | 3.5 | 5 |
| Calorie standard | 2,700 (1957 model) | 3,490 (ICMR) |
| Annual increment | 3% | At least 5% |
| Career Advancement Scheme | 3-tier (8-15-24 yrs) | 5-tier (5-8-12-18-24 yrs) |
| Commuted pension restoration | After 15 years | After 11 years |
Promotion, Appraisal and the Career Advancement Scheme (CAS)
The charter calls for an overhaul of the old promotion and appraisal policy to boost efficiency, transparency and accountability. It proposes replacing the existing 3-tier Modified Career Advancement Scheme (8-15-24 years) with a new 5-tier structure (5-8-12-18-24 years).
Demands on Retirement Benefits
- Restoration of commuted pension after 11 years instead of 15, citing several Punjab and Haryana High Court judgments.
- Leave encashment at superannuation that allows any shortfall in Earned Leave (capped at 300 days) to be covered from accumulated Half Pay Leave (HPL), in line with Rule 39(2)(a) and (b) of the Central Civil Services (Leave) Rules, 1972, as amended in 2009.
- A notional increment, on the Central Government model, for employees who retire on 30th June.
Health Scheme, Secretariat Status and Other Key Demands
- Revision of West Bengal Health Scheme (WBHS) rates in line with modern medical costs, fully cashless treatment, and higher doctors’ fees.
- Bringing Grant-in-Aid pensioners under WBHS as dependent beneficiaries of a government employee, superseding the existing Order No. 222-F dated 30.12.2022.
- Restoration of Secretariat status for West Bengal Secretariat Service (WBSS) and Common Cadre (CCW) staff, through a separate recruitment rule and upgraded educational qualifications.
- Setting up a Joint Consultative Machinery (JCM) as a formal platform for employee associations and the government.
- A robust, productivity-linked performance bonus scheme to reward excellence in government service.
Where Does the 7th Pay Commission Stand Right Now?
Since this charter of demands surfaced, matters have moved forward considerably. After the in-principle approval on 18th May, 2026, the West Bengal Finance Department formally notified the Commission’s final Terms of Reference on 22nd July, 2026, and the Commission was constituted. Its Chairperson is Shri Atanu Chakraborty, a retired IAS officer; its Members are Dr. Partha Mukhopadhyay and Dr. Partha Pratim Pal; and its Member Secretary is Shri Devi Prasad Karanam, Secretary to the West Bengal Finance Department. The Commission has been asked to submit its report within six months. Speaking at an event on 21st July, the Chief Minister said the ToR had already been prepared and that the government was aiming to implement the Commission’s recommendations within the current financial year, while narrowing the DA gap with the Centre in phases.
What Should Employees and Pensioners Do Now?
The Commission’s constitution and its official ToR are now finalised at the government level, but no decision has yet been announced on the actual pay structure or allowances. Until then, employees and pensioners should:
- Rely only on official notifications and circulars from the West Bengal Finance Department.
- Avoid being misled by speculative fitment-factor figures or salary-hike numbers circulating on social media.
- Keep following reliable sources for regular updates on DA and pay revisions.
When and in what form the 7th Pay Commission’s recommendations finally arrive is now the question on the minds of nearly 8 lakh state government employees and pensioners.
