<h1>Union Cabinet Approves 7th Pay Commission Recommendations, Boosting Pay and Pension for Over 1 Crore Employees.</h1> The Union Cabinet, led by the Prime Minister, approved the implementation of the 7th Central Pay Commission's recommendations on pay and pension benefits, effective from January 1, 2016. This decision impacts over 1 crore employees, including central government and defense personnel. Key changes include the replacement of Pay Bands and Grade Pay with a new Pay Matrix, an increase in minimum pay from Rs. 7,000 to Rs. 18,000 per month, and a fitment factor of 2.57 for pay revision. The Cabinet also enhanced gratuity ceilings, revised Military Service Pay, and retained certain interest-free advances. Committees were established to address allowance rationalization and pension system streamlining.