New Delhi, February 12: The Union Government led by Prime Minister Narendra Modi is working on a strategy to turn pay hike dream of central government employees into reality to help lower-level employees of pay matrix level 1 to 5 under 7th Pay Commission. (Update on 7th Pay Commission)

A Finance Ministry official on the condition of anonymity said that the government was committed to ‘pay hike’ of central government employees and is likely to affect lives of employees into better positions.

The official said, “government is looking to hike in pay with fitment formula of 3.00 times of basic pay of 6th pay commission.”

The central government employees unions have been pushing hard to increase the ‘minimum pay’ of central government employees from Rs 18,000 per month to Rs 26,000 per month with a fitment formula of 3.68 times.

Most of the union leader were sceptical that employees would see much benefit.

Shiv Gopal Mishra, NJCA chief cited a report from the 7th Pay Commission, which had got cabinet nod on June 29, 2016, the increased pay gap between lowest-earning employees and top bureaucrats from 1:12 in 2006 to 1:14.

Mishra added the pay gap should be made at least 1:12 for all employees.

He noted that the announcement made by Finance Minister Arun Jaitley for increasing of lower-level employees beyond the 7th Pay Commission recommendations came just a few days after cabinet nod of pay panel proposal.

FM Jaitley also reiterated his commitment in Rajya Sabha on July 19, 2016.

The official also said that the government raised the minimum pay from Rs 7,000 to Rs 18,000 per month while the maximum pay to Rs 2.5 lakh with a fitment factor of 2.57 times of basic pay of 6th Pay Commission.

But the government is mulling to make up pay gap between lower paid employees and top officers through the pay hike of employees, who are getting salaries from pay matrix level 1 to 5.

The government is legally bound to comply with the implementation of FM Jaitley’s announcement in Parliament on July 19, 2016, for a hike in minimum pay, so the pay hike beyond the recommendations of 7CPC for lower level employees will be implemented from April.

Finance Ministry is also looking into the issue of ignoring the DoPT letter on October 30, last year and is likely to take up the matter with the respective stakeholders.