The move will cost the state exchequer ‘14,719 crore annually.

It would benefit almost 12 lakh employees and teachers and about seven lakh pensioners and family pensioners, Chief Minister Edappadi K. Palaniswami said in a statement, hours after chairing a meeting of the Cabinet to give formal approval for the pay increase. “The JACTO-GEO will discuss and issue a statement”. According to reports, once the 7th pay commission is implemented, it is expected that the government employees will get a 20% hike in their salaries. It may be recalled that government employees in the state had held various demonstrations to protest against the delay in the implementation of the Seventh Pay Commission recommendations. “There is a three-fold increase in HRA, which is much higher than the recommendations of the previ ous commissions”, said a senior official associated with the pay revision.

TNGEA leader M Anbarasu told Express, “We have demanded that the minimum pay should be fixed at Rs 26,000 but the government has given only Rs 15,700”. The staff are already getting a dearness allowance of 135% of the basic pay.

Further, the 2.57 multiplication factor had been used to revise pension/family pension, which will be Rs 7,850.

Sources said the decision taken by the Cabinet is likely to be implemented from next week and a formal order in this regard will be issued on Friday. The upper limit of retirement gratuity has been hiked twofold to ’20 lakh. In the case of those who are on consolidated pay or contract, a minimum of 30% increase has been sanctioned.