Here's a quick look at the 7th Pay Commission recommendations and the likely implications:

Here's a quick look at the 7th Pay Commission recommendations and the likely implications:

-The Union Cabinet approved 23.55 percent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 percent of the GDP.

-Average salary hike includes 14.27 percent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 percent hike which the government doubled while implementing it in 2008.

-Recommendations to be implemented from January 1, 2016

-Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh

-The rate of annual increment retained at 3 percent

-24 percent hike in pension.

-The Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances

-Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel

-One Rank One Pension proposed for civilian government employees on line of OROP for armed forces

-Ceiling of gratuity enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25 percent whenever DA rises by 50 percent

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-Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently

-Financial impact of implementing recommendations in toto will be Rs 1.02 lakh crore - Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget

-Total impact of Commission's recommendation to raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7 percent

-Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only

-MSP for service officers more than doubled to Rs 15,500 per month from Rs 6,000 currently; for nursing officers to Rs 10,800 from Rs 4,200; for JCO/ORs to Rs 5,200 from Rs 2,000 and for non-combatants to Rs 3,600 from Rs 1,000

Source:http://zeenews.india.com/business/news/economy/7th-pay-commission-know-the-key-recommendations-cleared-by-cabinet_1901470.html