The Institute of Defence Studies and Analyses (IDSA) has said that once the 7th
pay commission is implemented, Indian defence service chiefs will be earning more salaries than their US counterparts.
Currently an Indian Army General earns around Rs.90 lakh annually. His basic pay alone is around Rs.11 lakh per annum.
The Admiral and the Air Chief Marshal earn around the same as salaries.
IDSA says that if the recommendations of the 7th pay panel are implemented, the salaries of the chiefs will jump to around $189,482 or Rs.1.26 crore per annum.
That is more than the salary of the chiefs of staff of the three wings of the US military. A four-star rank US General and his equivalent ranks currently earn $181,500 or Rs.1.20 crore per annum in salaries. The salary computation is based on purchasing power parity or PPP terms. The pay commission had observed that the salaries of the JCOs and other officers in the armed forces was brought almost at par with their American counterparts by the 6th
pay commission. One must note here that the annual PPP in the US is $54,630 and that in India is $5,833. The purchasing power parity conversion factor is used worldwide to compare income levels in different countries. Simply put, PPP is when the price of identical goods and services are equal in one country and another country when factoring in the exchange rate. For example, if is the exchange rate of $1 in US equals INR 66, a set group of goods and services that cost $100 in the United States, would cost INR 6,645 in India.