This implementation of the 7th CPC recommendations, as approved by the Union Cabinet on Wednesday,  will put an additional burden of 1.02 lakh crore rupees on the exchequer annually or nearly 0.7 percent of GDP. The commission has recommended a 23.55 percent hike in pay and allowances of government employees and the hike will be effected from January 1, 2016. The following are the highlights of the approved recommendations: • The minimum pay for government employees is recommended to be set at Rs. 18,000 per month; • The maximum pay is pegged at 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. • The increase in pay will be 16 percent, increase in allowances will be 63 percent and increase in pension will be 24 percent. • 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, determined by grade pay, will now be determined by the level in the pay matrix. • The rate of annual increment for employees will be 3 percent. • Abolition of 52 allowances and introduction of a Health Insurance Scheme. • One Rank One Pension proposed for civilian government employees on the line of OROP for armed forces. • Increase in Military Service Pay and revised pension formula for civil employees including Central Armed Police Forces (CAPF) and Defence Personnel retiring before 1 January 2016. • Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only. • Ceiling of gratuity enhanced from Rs.10 lakh to Rs. 20 lakh and ceiling on gratuity will be raised by 25 percent whenever DA rises by 50 percent. • Short service commissioned officers will be allowed to exit the armed forces at any point of time between 7 to 10 years of service. • A fitment factor of 2.57 which will be applied uniformly to all employees. • Systemic change in the process of Cadre Review for Group A officers recommended. • Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix. • House Rent Allowance (HRA) will be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The rate of HRA will be revised to 27 percent, 18 percent, and 9 percent respectively when DA crosses 50 percent. • Abolition of all non-interest bearing advances and increase in the limit for interest-bearing advances for buying a home from 7.5 lakh rupees to 25 lakh rupees. • An introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended. • In the case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel. • A consolidated pay package of Rs. 4,50,000 and Rs 4,00,000 rupees per month for Chairpersons and Members respectively of select Regulatory bodies. • The introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framewor