A Significant Salary Hike for MPs
In a recent announcement, the Central Government has approved a substantial 24% salary hike for Members of Parliament (MPs), along with increased daily allowances and pension benefits. Effective from April 1, 2023, this revision aims to align lawmakers’ compensation with rising inflation and living costs. The move has drawn attention as it follows similar salary hikes for government officials in various states.
Revised Salary and Allowances: What MPs Will Earn Now
According to an official circular from the Ministry of Parliamentary Affairs, the revised salary and allowances for MPs are as follows:
- Monthly Salary: Increased from ₹1,00,000 to ₹1,24,000.
- Daily Allowance: Raised from ₹2,000 to ₹2,500.
- Monthly Pension for Ex-MPs: Increased from ₹25,000 to ₹31,000.
- Additional Pension Per Year of Service: Increased from ₹2,000 to ₹2,500.
This increase is implemented under the Salary, Allowances, and Pension of Members of Parliament Act, 1954, ensuring that MP remuneration keeps pace with inflation.
The Basis for the Salary Revision
The salary and pension adjustments for MPs are based on cost inflation calculations as specified under Section 48 of the Income-Tax Act, 1961. The revision reflects the government’s initiative to ensure financial stability for elected representatives while adjusting their earnings to current economic conditions.
The official notification states: “In exercise of the powers conferred by sub-section (2) of section 3 and sub-section (1A) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954), the Central Government hereby notifies the increase in the salary, daily allowance, pension, and additional pension of Members and Ex-Members of Parliament on the basis of Cost Inflation specified under clause (v) of the Explanation to section 48 of the Income-Tax Act, 1961 (43 of 1961), with effect from 1st April, 2023.”
Comparison with Recent State-Level Salary Hikes
The decision to raise MP salaries comes shortly after the Karnataka Government’s approval of a 100% salary hike for its Chief Minister, Ministers, and MLAs. This increase has sparked debates on the necessity and timing of such pay hikes, particularly in the context of economic challenges faced by the general public.
Meanwhile, the announcement has also stirred political discussions, with BJP leader R Ashoka protesting against the Karnataka Government’s decision to provide a four percent reservation for Muslims in public contracts. The timing of these financial adjustments has led to mixed reactions from political parties and the public.
Balancing Public Perception and Financial Adjustments
While salary hikes for public representatives are often justified on the grounds of inflation and governance efficiency, they frequently attract public scrutiny. The recent increase for MPs has reignited discussions on government spending and the financial priorities of the administration. As the debate continues, questions remain on whether these hikes will positively impact governance or merely fuel criticism regarding political privileges.
With the elections approaching and economic concerns at the forefront, the government’s decision to increase MP salaries and allowances will likely remain a key topic of discussion in the coming months.
(With inputs from agencies)
