The Centre has approved a 24 per cent increase in the monthly salary of Members of Parliament, raising it from ₹1 lakh to ₹1.24 lakh, effective April 1, 2023. Alongside this, the daily allowance for MPs has been hiked from ₹2,000 to ₹2,500, while the monthly pension for former MPs has been revised upwards by 24 per cent from ₹25,000 to ₹31,000. Additionally, the extra pension per year of service beyond five years has been raised from ₹2,000 to ₹2,500 per month, as per an order from the Parliamentary Affairs Ministry.
The revision has been made under the Salary, Allowances, and Pension of Members of Parliament Act, 1954, and is linked to the Cost Inflation Index under the Income-tax Act, 1961.
The last revision of MPs’ salaries occurred in 2018, when the basic monthly salary was doubled from ₹50,000 to ₹1,00,000. At that time, provisions were introduced to automatically increase salaries and daily allowances every five years, starting from April 1, 2023, based on the Cost Inflation Index.
However, in April 2020, amid the COVID-19 pandemic, the government implemented a 30 per cent reduction in MPs’ salaries and allowances for one year to address financial challenges.
The current salary hike aligns with the previously established automatic revision mechanism, reflecting adjustments based on inflation and economic conditions.
Additional perks and benefits for MPs
Beyond their salaries, MPs enjoy a host of allowances and privileges, including ₹ 70,000 per month as a Constituency Allowance; ₹60,000 per month as an Office Allowance;
Free medical care for MPs and their families; 34 domestic flights annually, plus unlimited first-class train travel for both official and personal use; Rent-free accommodation in premium locations of New Delhi; ₹ 1.5 lakh per year in telephone benefits and 50,000 units of free electricity and 4 lakh litres of free water annually.
This pay hike for MPs comes soon after the Karnataka government approved a 100 per cent salary increase for the Chief Minister, Ministers, and MLAs.