This follows widespread dissatisfaction and disappointment over the recommendations of the Sixth Pay Commission.
The Committee of Secretaries has finalised its report and Defence Minister AK Antony will review these fresh proposals along with the service chiefs before forwarding them to the Cabinet for approval.
Details of the report are not known but the report is expected to enhance pay for middle-rung officers and also increase the Military Service Pay for personnel below officer rank.
The report is expected to address grievances over promotions by increasing the number of Generals, Brigadiers and Colonels and their equivalent in the Navy and the Air Force
It is also expected to rectify the anomalies in the rank structure between the armed forces on one side and paramilitary forces and civil services on the other.
The authorities are hopeful the new recommendations will stem the exodus of officers from the three services.
Close to 1,000 officers are reported to have put in their papers after the Pay Commission report.
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