§ Mr. BurnettTo ask the Secretary of State for Defence when the Government next intend to review with the Indian and Nepalese Governments the salaries and pensions payable to Gurkhas serving in the British Army; and what is the Government's policy on salaries and pensions payable to Gurkhas serving in the British Army. [108794]
§ Mr. SpellarUnder the terms of the Tri-Partite Agreement (TPA) between India, Nepal and the UK, rates of pay and pensions are linked to the Indian Army pay code. Major reviews of pay and pensions are carried out by Indian Government Pay Commissions which report every 10 years. The next Pay Commission will report in 2006. Interim changes continue to be implemented as they are notified to us by India.
British Gurkha pay is calculated in line with Indian Army rates although in 1997 a Universal Addition was introduced to take account of the cost of living outside Nepal; this is reviewed annually. These two elements combine to give salaries for British Gurkhas that are in line with comparable British servicemen.
The recent examination of Gurkha pensions and gratuities has substantially increased Gurkha pensions to allow for a welfare related cash uplift that will double the 109W pension payments for all Gurkha pensioners with effect from 1 April 2000. There are no plans for any further reviews of this nature. Pensions will continue to be paid immediately after 15 years service and index linked in accordance with cost of living in Nepal. These increases remain within the context of the TPA.