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The in-principle decision was taken based on a recommendation of the the state Pay Commission, Rural Development Minister Krishna Byre Gowda said.
The cabinet also decided to bring down the number of casual leaves from the existing 15 days to ten for the government employees, he told reporters here.
He said that in 2011 the Pay Commission had recommended five-day week and the recent paypanel also stuck to it.
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It was decided to reduce the number of days of casual leave, he added.
He said whether the changes will be implemented immediately or from next year will be decided after discussions with the Chief Minister.
The cabinet also decided to go for counselling through computerised system for transfer of group C and D government employees to bring in transparency. A draft Bill to this effect was approved.
Among the other decisions, it resolved to outsource the maintenance of pure drinking water units by calling for tender.
As many as 16,000 pure drinking water units out of the 18,000 approved by the Rural Development department had been installed across the state at taluk levels, Gowda said adding there was no clear policy on their maintenance.
The cabinet asked the Chief Secretary to implement an ordinance promulgated to protect the interests of gazetted officers in 1998 in a way that it does not affect the promotions of officers recruited in subsequent years.
On whether the cabinet discussed about the opposition to its last week decision on sale of3,667 acres of land to JSW Steel, Gowda said, the issue did not come up.