12 Nov 2025, Wed

India vs us salary system: The ways of increasing the salary of government employees in India and America are quite different. India has dependence on the Pay Commission, while Personal Management Office and Federal Law in the US handle salary, dearness allowance and job grades.

Pay Commission in India

The salary commission of central government employees and pensioners in India decides the pay commission. This commission is formed in a few years. Its role is to review the existing salary, allowances and pension and also create the structure of the new salary.

Let us tell you that the Pay Commission uses Fitment Factor. It is a multiplier. This multiplier measures the difference between the current pay structure and the proposed salary hike. For example, the Fitment Factor was kept 2.57 by the Seventh Pay Commission. Now suppose the current salary of an employee is 10 thousand and the fitment factor is 2.57. So not the basic salary will be 10 thousand × 2.57 = 25700.

This simply means that the salary of government employees in India increases only when the new pay commission is formed. This is done every 10 years.

How does salary grow in America?

Unlike India, there is no commission based system in America. In America, the government salary is controlled only through Personal Management Office as well as federal law and departmental rules. Employees in America are divided into different grades and levels. The salary here depends on their work, skill, experience and government grades.

Federal Law and Rules

Non -Labor Standard Act decides minimum wage and overtime rules. Labor Dippering Overn issues rules enhancing salary limits for Chhath. Along with this, the President also affects the salary. For example, the Widen administration had increased the minimum wage of the government contract employee to $ 15 per hour. It also included adjustment according to inflation.

Main difference between India and America

The increase in salary in India is done by the Pay Commission and it is at long intervals. But in the US, salary changes are made only through increases related to inflation, federal rules and performance reviews.

Also read: How many people watch TV in India, how much old entertainment way changed after OTT

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