Explanation:

7th Central Pay Commission (CPC) headed by Justice AK Mathur has recommended 23.55 percent hike in pay and allowances of government employees.
In this regard the commission has submitted its report to Union Finance Ministry in New Delhi and the recommended pay revision will come into effect from 1 January 2016.

Recommendations of 7th CPC

• Minimum basic pay of 18 thousand and maximum of 2.5 lakh rupees per month.
• Abolition of grade pay and pay band structure. The rate of annual increment for employees will be three percent.
• The pay will go up by 16 percent, allowances by 63 percent and pension by 24 percent.
• Abolition of 52 allowances and introduction of a Health Insurance Scheme.
• One Rank One Pension (OROP) scheme for central government staffers, para military as well as armed forces personnel.
• Increase in military service pay and revised pension formula for civil employees including Central Armed Police Forces (CAPF) and Defense Personnel retiring before 1 January 2016.