Finance Minister Arun Jaitley on Friday said the one rank one pension (OROP) concept was "an unambiguous commitment" of the government.
Addressing a press conference held to mark one year of the Narendra Modi government, Jaitley said the defence ministry was talking to his ministry on the issue.
"It will be implemented," he said.
Defence Minister Manohar Parrikar said last week that OROP was in its final stages and expected to be cleared by the finance ministry in a few days.
OROP is a long standing demand of ex-servicemen's associations and relates to payment of uniform pension to defence forces personnel retiring in the same rank with the same length of service, irrespective of their date of retirement.