Talking to reporters after cabinet meeting here, Chief Minister Oommen Chandy said this would be the UDF government's first Onam festival reward to people of Kerala.
Government would start disbursing pension amounts from August 21. Nearly 30 lakh people would benefit this, he said.
The cabinet constituted a sub-committee headed by Finance Minister K M Mani to examine the 10th State Pay Commission report to state government employees. The panel, headed by Justice (Ret) C N Ramachandran, handed its report to Chief Minister last month.
On the reported differences between State Finance Department and Kerala Public Service Commission, Chandy said issues would be sorted by State Finance Minsiter K M Mani through discussion.
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Chandy said no one has pointed out any corruption or misappropriation of funds in PSC. 'Certain diversion of funds had taken place without following usual norms', he said adding the issue would be over when norms were follwed.
Inspection conducted by officials of Finance department at the office of PSC had triggered a row with PSC objecting to the same holding that Finance Department has no right to hold such an inspection.