The commission also suggested up to 60 per cent hike in pensions of the armed forces.

Regarding gratuity, the Commission wanted that the ceiling of maximum Rs 3.5 lakh be raised to Rs 10 lakh to help all employees get full benefit of gratuity.

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, headed by Justice B N Srikrishna, proposed that people will get additional 20 per cent of basic pension on attaining the age of 80 years, which will subsequently be raised with the increase in age.

Employees who have attained 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.

The Commission also said the criterion of 33 years of qualifying service for receiving the full pension should be done away with and an employee should be eligible for 50 per cent pension after completing the minimum pensionable service of 20 years.

For the defence forces personnel, the Commission recommended a hike of 60-75 per cent in pensions of lower ranks like Sepoy, Havildar, Subedar and Naib Subedar. A person retiring in the rank of Sepoy will get a pension of Rs 5,335 as against Rs 3,319 per month at present.

It also recommended an ex-gratia of Rs 10-20 lakh for defence personnel who die on duty. Proposing modification of the present commutation table being used for the purpose of commuting, the Commission also suggested that in future, pension should be commuted according to the revised table, which may be revised taking into consideration the interest rates and mortality table.