The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has cleared recommendations of the 7th Pay Commission on Wednesday, reports PTI.

This move by government will benefit over one crore government employees and pensioners.

In November last year, pay panel had recommended a 14.27 per cent hike in basic pay at junior levels -- the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008, the report said.

The government in January had set up a high-powered panel under the Cabinet Secretary to process the recommendations of the 7th Pay Commission that will have a bearing on remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The entry-level pay has been recommended to be raised to Rs 18,000 per month, from the current Rs 7,000, while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from the current Rs 90,000, said the report.