A civil servant tells me that the recent salary increase has made him poorer!
How? Because his pay increase barely covers the corresponding increase in the cost of rent, fuel and groceries. This is his statement of expenditure:
We can’t do much about the increase in the cost of fuel and onions. They reflect price hikes in India and have nothing to do with salary increases here.
But we can’t allow rents and the prices of other goods to shoot up every time civil servants get a pay hike. This undermines the whole purpose of a pay increase. And it makes life for employees in the private sector that much more difficult.
Are you a civil servant? If so, has the recent salary increase made you richer or poorer?