The Union Cabinet on Friday approved revision of the 'One Rank One Pension' scheme for defence personnel and family pensioners, Information and Broadcasting Minister Anurag Thakur said.

It will lead to enhanced pension according to the OROP proposal, he said.

Some 25 lakh military pensioners will benefit under the revised One Rank One Pension (OROP), programme which the government approved today.

The benefit would also be extended to family pensioners, including war widows and disabled pensioners, the government's official spokesperson tweeted after Thakur announced the Cabinet decision at a press conference.

OROP is short for "One Rank One Pension", which aims at pension uniformity for armed forces personnel retiring at the same rank with the same length of service.

The revised OROP would encourage young people to join the armed forces, the government said in a statement.

The OROP revision is applicable from the backdate July 1, 2019. Armed forces personnel retired up to June 30, 2019 will be covered, the government said in a statement.

Over ₹ 23,600 crore will be paid as arrears from July 2019 to June 2022. The government has calculated the estimated additional annual spending on the revised OROP at ₹ 8,450 crore, including 31 per cent dearness relief.

The arrears will be paid in four half-yearly instalments. However, all family pensioners including those who get special or liberalised family pension and gallantry award winners will be paid arrears in one instalment.

The government had taken a historic decision to implement OROP in November 2015 for revision of pension from July 1, 2014.

The government had said it would rework the pension every five years. So far, some ₹ 57,000 crore has been spent at ₹ 7,123 crore per year in eight years.