One of the challenges for universalisation of school education using the public-school system arises from the supposed lack of financial resources. Particularly, the high salary of teachers as per the Sixth Pay Commission has been used to point towards infeasibility of public institutions serving the goal of universalisation (Jain and Dholakia, 2009; 2010). This article demonstrates that with more realistic parameter values, the estimates would be revised downwards significantly. Further, in a federal set up, teacher salary is arrived at through a complex set of negotiations, such that the recommendation of the Central Pay Commission is not sacrosanct. In working towards a normative, a “middle path” of decent salary for all teachers is suggested, which would ensure both equity, efficiency and feasibility.