A Cabinet was appointed to take the decision and special emphasis has been given to the armed forces and other establishments. According to Information and Broadcast Minister Priya Ranjan Dasmunsi, the revised pay scales will take effect from 1st January 2006. He added that arrears to be paid in two installments that is 40 per cent this fiscal and 60 per cent in the next financial year. Revision of basic pay for Lieutenant Colonels, Colonels, Brigadiers and equivalents have also been approved.
The Minimum basic salary was raised to Rs 7,000 from Rs 6,660 per month as recommended by the Commission. The minister also added that special allowances will be provided to Army commandoes and their Naval and Air Force equivalents.
Expenditure Secretary Sushma Nath, who was present alongside Dasmunsi said that average increase in pay 21 per cent. Dasmunsi added, "Financial implication of Pay Commission on General Budget is Rs 15,700 crore; and Rs 6400 crore on Railway Budget in 2008-09."