New Delhi. In a decision that will benefit more than 40,000 newspaper employees, Union Cabinet today approved the recommendations of the Majithia Wage Boards providing for an increase in the salaries and allowances of journalists and non-journalists. The revised wages will be applicable with effect from July 1, 2010 while the other allowances like Transport, House Rent and Hardship shall be effective from the date of notification of the awards in the Gazette, Labour Minister Mallikarjun Kharge told reporters. The revised payscale is based on old basic pay plus DA admissible upto June, 2010 plus 30 per cent of the interim relief which has already been given. The revised pay comprises variable pay at the rate of 35 per cent for employees working in the first four classes of newspaper establishments and 20 per cent for remaining classes of newspapers. The variable pay should be added in the revised basic pay for calculation of all allowances. In the case of news agencies, the Cabinet note had recommended similar parameters for the first two classes and the remaining for the other two classes. Kharge said that newspapers have been classified into eight categories and news agencies into four on the basis of their gross revenue. Newspapers with a gross revenue of Rs 1000 crore and above have been put in the top category of Class I, Rs 500 crore (II), Rs 100 crore and above but less than 500 crore (III), Rs 50 crore and above but less than Rs 100 crore (IV), Rs 10 crore and above but less than Rs 50 crore (V), Rs 5 crore and above but less than Rs 10 crore (VI), Rs 1 crore and above but less than Rs 5 crore (VII) and less than Rs 1 crore Kharge said the Government did not accept the Wage Board recommendations relating to enhancement of retirement age and operation of pension funds because they are not under the purview of the Working Journalists Act. The Government had constituted two wage boards in May 2007. The Chairman of the Eage boards G R Majithia submitted the final report to the Government on December 31 last year.