"Within this the increase in pay will be 16%, increase in allowances will be 63% and increase in pension would be 24%," states the report.
Seventh Pay Commission hiked salary of government employees and pensioners by 23.55% which will be implemented from January 1, 2016.
The Pay Commission headed by Justice AK Mathur submitted its report to Finance Minister Arun Jaitley on Thursday.
"The report comprising of 900 pages is made after considering hardships of people all over the nation," said AK Mathur.
"Within this the increase in pay will be 16%, increase in allowances will be 63% and increase in pension would be 24%," states the report.
According to the report, the minimum pay in the government is recommended to be set at Rs 18,000 per month.
For Apex scale, the maximum pay is recommended as Rs 2.25 lakhs per month and for cabinet Secretary and others at the same level the maximum pay is set at Rs 2.50 lakh.
"The total financial impact in the FY 2016-17 is expected to be Rs 1,02,100 crore over the expenditure," said Jaitley.
The Seventh Pay Commission is also going to impact on GDP by entailing an increase of 0.65% points in its ratio of expenditure.
The commission also recommends a revised pension formulation for civil employees which includes CAPF and Defence Personnel who have retired before January 1, 2016.
The age of superannuation for all CAPF personnel is recommended to be set at 60 years uniformly.
The central government constitutes the pay commission every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.
The Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.
The Union Cabinet had extended the term of the panel in August by four months, till December. The 6th Pay Commission was implemented with effect from January 1, 2006.
(With Agencies)
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