The Kerala Cabinet has approved the proposals of the 10th pay commission, which is expected to drill a Rs 7,222-crore hole into the state exchequer.

The decision will benefit lakhs of government employees, teachers and pensioners even as the state goes into polls in the next three months.

Chief Minister Oommen Chandy said that the revised pay scales will be implemented from February 1 with retrospective effect from July 1, 2014.

Employers and pensioners will start getting their revised salary and perks with the February salary.

The revision will be accompanied by a hike in dearness allowance of three per cent from January 1, 2015, and six per cent from July 1, 2015, thereby clearing all DA arrears to date.

The revised salary ranges from Rs 16,500 in the minimum scale and Rs 1,20,000 in the maximum scale. The extent of hike in pay ranges from a minimum of Rs 2,000 to a maximum of Rs 12,000.

The pay and pension arrears will be distributed in four half-yearly installments from April 1, 2017, and will carry the same interest as provident fund deposits.

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