Imagine the situation when one fine morning your boss calls you and says you have to relocate. What would be your reaction? Would you agree by asking for a salary hike or just refuse and quit the job?

Or suppose your boss tell you to relocate to Bangalore or Mumbai from Chennai, Delhi, Kolkata or a smaller town, with an INR 15,000 increase in salary?

What would you think then? Before replying a “yes” or “no” you need to think of the moving expenses in that city, property taxes, income taxes, whether your spouse would be able to relocate, children’s education, and last but not the least impact on your career if your refuse the relocation.

According to the CPI (Consumer Price Index), an analysis done by the Reserve Bank of India, Bengaluru (erstwhile Bangalore) has been declared as the costliest city in India, in the year 2012. The financial capital of India, Mumbai ranks second amongst the costliest cities in India. The CPI or Consumer Price Index is measured in terms of food costs, transport, clothing, accommodation costs, price of essential utilities like gas, electricity, internet, water, and so on. As per the current figure of Bharat Petroleum, the price of a 14.5 kg (refill) LPG cylinder in Bangalore is INR 415, in Kolkata it is INR 405, in Mumbai the cost is INR 402, in Delhi the price is INR 399, and in Chennai it is INR 393.50.

The national average Consumer Price Index is 198. As per the CPI, the costliest cities in India, as per ranking are –

  • Bengaluru (CPI – 200)
  • Mumbai (CPI – 199)
  • Kolkata (CPI – 184)
  • Delhi (CPI – 181)

Keeping in view about the living expenses, toward transport, accommodation, utility bills, and food, you need to think whether it would be possible for a total family relocation. However, if the relocation is temporary (6 months to 2 years); it would be best not to relocate the entire family and create disruption in the child’s education. Keeping in view the expenses factor, you can negotiate with your company for the appropriate salary hike.

As per the 6th Central Pay Commission of the Government of India, there has been a 7% increase in the D.A. (dearness allowance) for all central government employees, which is 65% from the previous 58% of the basic salary. The revised salary has been in effect from January 1st, 2012. About 5 million central government employees in various sectors are benefitted from this revised pay scale.

At present the pay scale of central and state government employees are more or less similar. After the sixth pay commission of the central government, such proposals of salary revision are also coming from the employees of state government, panchayati raj, municipal bodies, and other autonomous institutes. The civilian posts in the central government are categorized into – A, B, C, and D. As per the previous fifth pay commission, the recommended classifications are – Executive (for A), Supervisory (for B), Supporting (for C), and Auxiliary Staff (for D).