The Cabinet on Wednesday approved the recommendations of the Seventh Pay Commission, ANI reported. The panel had submitted its report in November last year. Finance Secretary Ashok Lavasa had said on Monday that the Empowered Committee of Secretaries, which had been set up to analyse the commission’s suggestions, had submitted its report.

The committee, headed by Cabinet Secretary PK Sinha, was constituted by the Centre in January to look into the Seventh Pay Commission’s recommendations, which include a minimum monthly basic salary of Rs 18,000 and a maximum of Rs 2,50,000 – a 23.6% hike in salaries and pensions of central government employees. Its suggestions will alter the salary structures of 52 lakh pensioners and 47 lakh central government employees.

The Centre’s total expenditure on salaries and pensions is expected to jump Rs 1.02 lakh crore, including Rs 28,450 crore in the Railway Budget. The implementation of the recommendations is also expected to have a considerable impact on inflation.