The decision to promulgate an ordinance was taken at a meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh.
The revised salary of the Chief Justice of India would be Rs 1 lakh per month and Rs 90,000 per month for the judges of the apex court.
Chief Justices of High Courts would draw monthly salary of Rs 90,000 while the judges of these courts would receive Rs 80,000 per month.
The government has decided to take the ordinance route as the Bills in this regard could not be passed in the just-concluded session of Parliament.
"The Cabinet has decided to promulgate an ordinance to that effect," Science and Technology Minister Kapil Sibal said briefing reporters after the meeting.
He said pension of the judges would also be revised. Salaries of central government employees have already been revised following recommendations of the Sixth Pay Commission.