Let total number of employees in the beginning be 8x.
Total employees after decrease = 7x
Initial salary of the employee = 5y
Final salary of the employee = 6y
Total salary in the beginning = 8x×5y = 40xy
Final total salary = 7x×6y = 42xy
Clearly, final salary > initial salary.
So, the total salary has increased.
∴ Increase ratio = 40xy : 42xy = 20:21