The government's decision to increase the house rent by 134 percent excluded those employees living in government accommodations and requisitioned houses. Sources with finance ministry disclosed that the employees whose house rent was freezed with 1991 pay scale would get the benefit. The percentage of such workers is only 12 percent. This means that a small portion of government servants will be blessed with this raise.
The Pay and Pension Committee in its last meeting observed that civil servants who have government accommodations are 7 percent. Rest has requisitioned private houses. They are excluded from the 134 percent raise, because their rental ceiling is revised after every three years and they are already getting allowances matching the market rental rate.
The government in budget 2005-06 made announcement of 15 percent raise in the basic pay scales with 134 percent increase in house rent and 100 percent increase in other allowances. This is the third raise in salaries by the government since 2001. First time 20 percent ad hoc relief was given and second time it was 15 percent.