Employees of 105 municipalities would now get salaries according to the provisions of the 7th Pay Commission.
The Gujarat government also raised the annual income cap from Rs 1.50 lakh to Rs 2.50 lakh for the 'Ma-Vatsalya' scheme for free medical treatment of up to Rs 2 lakh for serious ailments.
"Till now, only people with an annual income of less than Rs 1.50 lakh were eligible for treatment of up to Rs 2 lakh at any of the government-approved hospitals. Now we have decided to raise this income limit to Rs 2.50 lakh, so that more people can benefit from the Ma-Vatsalya scheme," Deputy Chief Minister Nitin Patel told reporters in Gandhinagar on Wednesday.
Around 7,000 "fixed pay" teachers -- whose salaries are fixed for five years -- as well as administrative staff of government-aided secondary and higher secondary schools will be given pay hikes.
"We have decided to increase the monthly salary of 'fixed-pay' teachers of secondary schools from Rs 16,500 to Rs 25,000. Assistant teachers, who used to get Rs 10,500, will now get Rs 16,224. Administrative assistants will now get Rs 19,950 from the current salary of Rs 11,500," Mr Patel said.
A similar raise has been approved for teachers and administrative staff of higher secondary schools which are dependent on government grants, said Patel, who handles the finance portfolio.
Around 15,000 employees of municipalities will also get a pay hike.
Mr Patel said the government had decided to give permission to 105 local bodies to pay salaries in accordance with the 7th Pay Commission.
"Out of the total 162 municipalities in the state, 105 are paying their employees as per the 6th Pay Commission.
Considering their demand, we have decided to allow these 105 local bodies to pay as per the 7th Pay Commission. This will benefit around 15,000 employees," Mr Patel said.
The Election Commission had last week announced the poll schedule for Himachal Pradesh but not for Gujarat, though the terms of both the Assemblies expire almost at the same time.