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How good is this pay hike of 21%?

August 14, 2008

Notwithstanding the average pay hike of 21 per cent for over 50 lakh central government employees announced on Thursday, the median salary of the government staff would still fall behind those employed in the private sector by more than Rs 100,000 per annum.

Govt okays 21% pay hike; arrears from 2006

The wage hike would increase the financial implication for the Centre by Rs 17,798 crore (Rs 177.98 billion) annually and the arrears with effect from January 2006 would cost Rs 29,373 crore (Rs 293.73 billion), Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.

The government increased the minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 recommended by the Commission headed by Justice B N Srikrishna who submitted the report in March this year.

Thus the total emoluments of an employee at the lowest level would rise beyond Rs 10,000 per month after the allowances are included.

Image: An Indian national flag | Photograph: Sajjad Hussain/AFP/Getty Images

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