"Generally, compensation plans for locally employed staff at US Missions abroad are based upon prevailing wage rates and compensation practices for corresponding types of positions in the employment locality," a State Department Spokesperson said yesterday.
The spokesperson was responding to a question on whether the US Embassy complies with local wage laws.
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Subsequently, she was strip searched and held in jail with drug addicts and criminals which triggered a row between the US and India. Khobragade, 39, was released on a $250,000 bond.
Following the arrest of Khobragade, India has sought details of salaries of the Indians working at the American Embassy in New Delhi and its other diplomatic missions.
According to information available, Indian staff working at US Embassies including cooks and drivers are paid between an amount of Rs 12,000 to Rs 15,000 ($200 to 250) which is below the minimum wage of $9.47 per hour applicable in New York or in any other US city.
However people close to the US embassy is of the opinion that despite current negative reporting in India, the embassy is generous in the matters related to compensation to local employees.
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