India ups cost of living allowance for govt staff

NEW DELHI (Reuters) - India on Friday approved a rise in a cost of living allowance for government employees and pensioners that will cost 38.46 billion rupees ($947.3 million) in the fiscal year to March 2009, a government statement said.

The cost of living allowance has been raised by six percentage points to 47 percent of basic salary from 41 percent, backdated to January 1, it said.

The government revises the allowance twice a year. The revision is calculated on the basis of the percentage rise in the 12-month average of the consumer price index.