New Delhi, December 16: The Union Government has already decided to keep the salary of mid and senior level central government employees unchanged, on the other side it is also considering a proposal to raise the salary under 7th Pay Commission of all central government employees whose pay falls within pay matrix level 5. This may bring in some excitement for a large number of government employees who were eagerly waiting for the minimum wage hike. (UPDATE: DoPT Against NAC Proposal of Raising Minimum Pay, Fitment Factor; Junior-level Employees May Get Salary Hike)Also Read - 7th Pay Commission: Govt Makes Big Announcement On Dearness Allowance For Gratuity Calculation, Leave Encashment Of Retired Employees

A senior official within the Finance Ministry on condition of anonymity reportedly said, “The government is considering a proposal to raise the salary of all central government employees up to pay matrix level 5, beyond the 7th Pay Commission’s recommendation”. Also Read - 7th Pay Commission: Good News For Central Govt Employees. They Will Receive These Benefits Before 3% DA Hike

The source refused to divulge any further details on what the quantum of the increase will be. Also Read - 7th Pay Commission DA, Gratuity, Leave Encashment Benefits For Government Employees Retired In 2021

“Since last two years, the government is working on the numbers and also on the burden to the exchequer that will be caused after the pay is increased. It is not finalised yet; however, it will be close to the demands of the union. There will be more clarity on it in the next few weeks,” the official said.

The salary of a mid-level and senior level will remain unchanged.

“There will be no change in salaries of employees above pay matrix level 5. The ministry is of the view that they have already got a good hike in the 7th Pay Commission recommendations,” a senior official added.

The 7th Pay Commission had also recommended that a hike of 14.27 per cent in basic pay of central government employees, raising minimum pay from Rs 7,000 to Rs 18,000 a month.

Following the recommendations of 7th Pay Commission in June 2016, central government employees started getting a minimum pay of Rs 18,000 a month while the maximum pay is Rs 2.5 lakh per month.

Central government employees’ unions, which were unhappy with the Pay Commission recommendations, had demanded that the minimum pay must be raised to Rs 26,000 instead of Rs 18,000 and the upper limit be raised to Rs 3.25 lakh a month.

The government official had also threatened to go on an indefinite strike over pay hike on July 11, 2016.

The unions called off their strike after Finance Minister Arun Jaitley assured that the government would consider salary hike after having a discussion with all stakeholders.

Several media reports suggested that in future, the government will do away with pay commissions and look at an alternative way to revise future salaries and allowances of central staff and pensioners.