7th CPC – Indian Service Chiefs may earn more than top US General after the Pay Commission is implemented…
For the first time, the Indian Army Chief and his counterparts in the IAF and the Navy will draw more salary than the top General and equivalent in the US based on Purchasing Power Parity (PPP) terms when the recommendations of the 7th Central Pay Commission are implemented.
A comparison drawn by the Institute for Defence Studies and Analysis (IDSA), a Defence Ministry think tank on the pay packets of Army Chiefs and equivalent in the US, the UK and India, said a General and equivalent in the US was paid $ 181,500 per annum (in PPP terms). The salary n the UK for similar ranks was $ 269,868. In India, the three services, who enjoy pay equivalent to the Cabinet Secretary, received $ 140,520.
If the recommendations of the Pay Panel are implemented, the Indian Army Chief’s annual salary will jump to $ 189,482 (in PPP terms), almost $ 8000 more than what a general and equivalent ranks draw in the US. The huge salary hikes will apply equally to civilian officers too.
India’s annual per capita income is $ 5,833 (in PPP terms) while it is $ 54, 630 in the US and $ 39, 137 in the UK.
The Purchasing Power Parity conversion factor, used worldwide to compare income levels in different countries, is “ the number of units of a country’s currency required to buy the same amounts of goods and services in the domestic market as a US Dollar would buy in the US”.
Senior Officers of the Armed Forces, however, said the IDSA comparison based on PPP model was “deeply flawed” as it did take into account differences in living standards, cost of essentials, needs and requirements as well as working conditions in countries concerned.
The Pay Panel observed, in light of protest by the three service chiefs asking for more money and perks, that “Defence Service Officers and JCO/ ORs, based on 6th CPC Pay scales, are placed quite well in terms of pay, even in relation to defence personnel in countries like US and UK, where the GDP per capita in PPP terms for the country as a whole is significantly higher than that of India – 9.4 times in the case of US and 6.7 times in the case of UK”.
These conclusions are, however, equally applicable to civilian employees of the government who are similarly placed. The Pay Panel’s analysis did not take into account the augmentation of pay being recommended by the 7th CPC.
Source: The Times of India