The Cabinet meeting was presided over by Prime Minister Narendra Modi. If one calculates the hike percentage then it would mean that the basic pay would go up from Rs 18,000 to Rs 21,000.
The revised pay scales, approved by the Cabinet, will be applicable from January 1, 2016. HRD Minister Prakash Javadekar said that the decision has been taken to attract good talent to academics and also as a sense of justice for all the teachers who are now in the profession. "This is not a gift, this is justice for those who are already serving", Javadekar said.
The minister said the faculty at central government's institutes and universities will get the benefit immediately but teachers at higher education institutions run by the states may have to wait a bit longer.
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The Union cabinet on Wednesday cleared revised pay scales for almost eight lakh teachers and academic staff of higher educational institutions following the implementation of the 7th Pay Commission.
Also, salaries of teachers at 119 centrally-funded institutions like the IITs, IIMs, IISc, NITIE, and IIITs would be revised.
In July, the government had notified the recommendations of the 7th Central Pay Commission on allowances with 34 modifications, with a total financial implication of Rs 30,748.23 crore per annum. This would result in the revision of pay scales for about eight lakh teachers and other academic staff in higher educational institutions and in Centrally Funded Technical Institutions. The Vice Chancellors of universities across the country will now get Rs 2,25,000. The additional presure on the state exchequer to make this pay hike possible is estimated to be close to Rs 9,800 crore. The salaries of government employees will increase by 20 per cent after this decision.