7th Pay Commission: Allowances to pension — here’s Something you need to know , 

The Union Cabinet is expected to take up on Wednesday the Empowered Committee of Secretaries’s report on the 7th Pay Commission.
The Empowered Committee of Secretaries, which was formed to look into recommendations of the Seventh Pay Commission, has finalised its report, Finance Secretary Ashok Lavasa said.
Here is everything you need to know about the proposed recommendations in the 7th Pay Commission. to find out what the Pay Commission changes are, if accepted by the Cabinet.
Date of implementation
The recommended date of implementation is January 1, 2016. So, government employees will get arrears from January this year.
Minimum Pay
Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.
Maximum Pay
Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.
What are the financial implications?
The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the Business As Usual scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore.
Out of the total financial impact of Rs 1,02,100 crore, Rs 73,650 crore will be borne by the General Budget and Rs 28,450 crore by the Railway Budget.
In percentage terms the overall increase in pay & allowances and pensions over the Business As Usual scenario will be 23.55 per cent. Within this, the increase in pay will be 16 per cent, increase in allowances will be 63 per cent, and increase in pension would be 24 per cent.
The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+
Pension) to GDP compared to 0.77 per cent in case of 6th Central Pay Commission.
What is the New Pay Structure?
The present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.
Fitment

A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
Annual Increment
The rate of annual increment is being retained at 3 per cent.
Modified Assured Career Progression (MACP)
* Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
* The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.
* No other changes in MACP recommended.
Military Service Pay (MSP)
The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows, by  Agencies,