The Cabinet is likely to take up Seventh Pay Commission recommendations for government employees on June 29.
Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer annually.
Finance Minister Arun Jaitley had in his Budget for 2016-17 provisioned Rs 70,000 crore towards Seventh Pay Commission awards, which is around 60 per cent of the incremental expenditure on salaries.
The Pay Commission's recommendations are due from January 1, 2016.
The central government constitutes the pay commission every 10 years to revise the pay scales of its employees. The Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.