The Commission also suggested up to 60 per cent hike in pensions of the armed forces. On gratuity, the Commission wanted that the ceiling of maximum Rs 3.5 lakh be raised to Rs 10 lakh to help all employees get its full benefit. While ruling out any change in the current rates of pension of 50 per cent of the last salary drawn, the commission recommended that the quantum of pension available to old beneficiaries will be increased.

The Commission proposed that people will get additional 20 per cent of basic pension at the age of 80 years, which will subsequently be raised with the increase in age. Employees of the age of 85 years will get 30 per cent extra pension with 40, 50 and 100 per cent hike for people above the age of 90, 95 and 100 years.