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.
The Admiral and the Air Chief Marshal earn around the same as salaries.
A US Army soldier during an exercise with an Indian Major. WikipediaCommons
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.