The doctors had last month threatened to resign en masse if their demands for pay revision and regularisation of services of contract doctors were not met by September 28.

The state Cabinet that met here today approved a salary hike by Rs 8,000 to doctors who have completed post-graudation on their own expenses and Rs 5,000 to PG diplomo holders, Home Minister Dr V S Acharya told reporters here.

In service doctors who completed PG under government seat quota would get Rs 5,000 hike and PG Diplomo holders Rs 3,000.
Salaries of doctors serving in rural areas will go up by Rs 6,000. Doctors who have moved over to urban areas after rural service will get Rs 4,500 increase in salaries, he said.

"Being a doctor myself, I know the pay revision falls short of the doctors demands. But under the existing economic conditions, this is what the government can offer," he said.

The cabinet also decided to regularise the services 569 doctors, including 107 dentists, now working on contract basis.