At least in the central government institutions, enough and more for our needs. In private colleges, the ad hoc appointees have a tough time with a lot of exploitation going on. On a cost-to-company basis, an Assistant Professor's "package" (at the beginning, with a fresh PhD) is certainly not less than Rs. 12 lakh a year at IIT Kanpur (and I am NOT including the joining bonus and young fellowship awards), while a senior professor's "package" is of the order of Rs. 30 lakhs a year. And if you add the fact that you have a permanent job, nice campus life (at least for large campus based institutes), living next to office, no pollution, flexibility in work hours, it is really worth much more than 30 lakhs. And if you add the satisfaction that you get in the job, the respect of not just students, but also alumni, and from society at large, I don't think there is any compensation which could be better than this.

Hope this helps.