"Finally, the airline, which has not paid employees their salary for the last five months, has started paying February salary from Thursday," sources said.
In the first phase, junior cabin crew and ground handling staff have been paid, they said adding the pilots and engineers are expected to receive their salary from next Friday.
A Kingfisher spokesperson confirmed the move, saying, "staff salary payments have commenced".
The carrier has not been paying salaries to employees for the past five months nor could it pay its vendors and has also defaulted on tax payments.
Though it has been seeking fresh bank funding since last December, bankers are not willing to extend fresh loans as it has not been servicing its loans worth Rs 7,500 crore since January.
Earlier this week, its pilots went on strike for a day to demand payment of salaries.