Central Government Issues Notification on 24% Hike in MPs’ Pay and Perks

The Ministry of Parliamentary Affairs has officially notified a 24% increase in the salaries of Members of Parliament, effective from April 1, 2023. The revision is based on the Cost Inflation Index and marks the first hike since 2018.

Revised Salary Structure

With the updated structure, an MP’s monthly salary has increased from ₹1,00,000 to ₹1,24,000. This is the first revision since February 2018, when salaries were raised from ₹50,000 to ₹1,00,000. The current hike has been implemented retrospectively.

The constituency allowance has been revised to ₹87,000 per month, up from the earlier ₹70,000. Office expenses allowance has also been raised from ₹60,000 to ₹75,000 per month.

MPs are entitled to a daily allowance when attending Parliament sessions or committee meetings. This has now been revised from ₹2,000 to ₹2,500 per day.

Pension Revisions for Former MPs

For former MPs, the monthly pension has increased from ₹25,000 to ₹31,000. Additionally, for every year of service beyond 5 years, the additional pension has gone up from ₹2,000 to ₹2,500 per month.

Additional Perks 

MPs will receive 34 domestic air tickets per year, unlimited first-class train travel, and a road mileage allowance. They are also allotted 50,000 electricity units, 4,000 kilolitres of water annually, and official housing in Delhi or a housing allowance. An annual phone and internet allowance is also provided.

Background and Automatic Revision System

In 2018, the government amended the Salary, Allowances and Pension of Members of Parliament Act, 1954, through the Finance Act, 2018. This introduced a system for automatic revision of salaries and allowances every five years, linked to the Cost Inflation Index, eliminating the need for separate approvals or recommendations by MPs.

Earlier Salary Cuts During COVID-19

In 2020, during the COVID-19 pandemic, the government had announced a 30% cut in MPs’ and ministers’ salaries for one year as a cost-saving measure.

Conclusion

The revised salary and allowance structure will apply from April 1, 2023, as notified. All changes are inflation-indexed and follow the framework established in 2018 for automatic, periodic adjustments.

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