"The State Cabinet and Chief Minister Naveen Patnaik have approved the new policy which will be implemented with retrospective effect from April 1, 2013 benefiting around 25,000 teachers," Minister for School and Mass Education, Rabi Narayan Nanda, said.
According to the new policy, schools getting block grant for more than eight years would be eligible for full grants-in-aid and be paid as per the Sixth Pay Commission.
Similarly, schools receiving grants for over six years would be eligible for 75 per cent grants-in-aid.
Schools receiving block grants for more than three years would be eligible to 60 per cent grants-in-aid and the remaining block grant schools would receive 40 per cent grants-in-aid.
The state government will have to bear an additional Rs 293 crore due to implementation of the new policy.
The teachers being paid salary on the basis of block-grant policy have been demanding regularisation of their service at par with other teachers in the state.