The majority Govt. Sector staff are now contractual and in our India they earn a mere Rs. 12,000-14,000/- monthly on average which is below living wage. Neither they can educate their children properly nor afford a house ever in life with that income. Further,  a 30 year employee, a 45 year and a 60 year in same level of work earn the same with no real increments or anything.

Govt. Sector payscales influence market prices and so even private sector takes cue from that, so if majority workforce have no spending power whole of national economy is affected. Current spate of increase in spending in luxury items by top 5% of the populace and stagnation of sell in normal everyday items speak volumes on this matter.

While permanent workers get a hike regularly including the Pay Commissions, the majority contactual workers live  a pathetic life effectively affecting the public service provided by Govt. Agencies which are mostly on the later's responsible shoulders. Also Indian Pvt. Sector has adopted this contractual employment from Govt. Sector with little or no benefits for the employees and not even minimum wages from which too the contractor's cut their own percentage