New Delhi, Mar 12: A good news will soon arrive for central government employees about a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission or 7th CPC. The hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission would be announced as a measure of economic strength after multi-crore bank fraud in Punjab National Bank (PNB), said a news report quoting a senior Finance Ministry official.

The government is likely to raise minimum pay to Rs 21,000 from Rs 18,000 and fitment factor to 3.00 times from 2.57 times that were recommended by the 7th Pay Commission. “This is just one of the many ways in which the government want to create a fairer for lower-level employees and the government is mulling to increase the pay of employees, who get salaries from pay matrix level 1 to 5, ignoring the DoPT letter,” the official was quoted as saying.

To look into various pay related anomalies arising out of the implementation of the 7th Pay Commission’s recommendations, the government had formed National Anomaly Committee (NAC) in September 2016. However, a letter from the DoPT in October last year that the decision for increasing the minimum pay and fitment formula as per the recommendation of the 7th Pay Commission does not come under the anomalies and therefore the issue is not a concern of the NAC.

The 7th Pay Commission had recommended a 14.27 percent hike in basic pay, raising minimum pay from Rs 7,000 to Rs 18,000 month with fitment factor 2.57 times in June 2016. Since then the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times. However, the government is considering to hike minimum pay to Rs 21,000 from Rs 18,000 and fitment factor to 3.00 times from 2.57 times.

The Finance Ministry has reportedly formed a panel to take the final call on a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. Cabinet Secretary Pradeep Kumar Sinha may head the panel, which is likely to submit its report in six months. The change might take effect from the new financial year, which begins on April 1.