The state cabinet meeting chaired by Chief Minister Shivraj Singh Chouhan cleared the proposal, Public Relations Minister Narottam Mishra said.
These employees would get the next annual increment on September 1 next year, Mishra told reporters, adding that they would be entitled to 125 per cent dearness allowance (DA).
As per the decision, the daily wagers who started working between May 16, 2007, to September 1, 2016, will be regularised as permanent government staffers.
In another decision, the minister said, the cabinet gave in-principle approval to set up 'Composite Logistics Hub' on 81 acres of land in Katni district.
It was expected to attract an investment of Rs 125 crore and a proposal in this regard will be sent to the Centre for approval, the minister added.