New Delhi: The Central government has notified a 24 per cent increase in the salaries of Members of Parliament, raising their monthly compensation to Rs 1.24 lakh, effective retroactively from April 1, 2023. The hike, announced on Monday through a notification issued by the Ministry of Parliamentary Affairs, is based on the Cost Inflation Index.
Along with the salary increase, several allowances and benefits for sitting and former MPs have also been revised upward. The daily allowance for MPs attending Parliament sessions and committee meetings has been increased from Rs 2,000 to Rs 2,500.
Former parliamentarians will see their monthly pension rise from Rs 25,000 to Rs 31,000. Additionally, the extra pension amount granted for each year of service beyond the initial five years has been increased from Rs 2,000 to Rs 2,500 per month.
The constituency allowance for MPs has been raised from Rs 70,000 to Rs 87,000 per month, while the office expenses allowance has increased from Rs 60,000 to Rs 75,000 monthly. This office expense allocation includes Rs 50,000 for hiring computer-literate personnel and Rs 25,000 for stationery items. MPs are now entitled to purchase durable furniture worth Rs 1 lakh and non-durable furniture valued at Rs 25,000 once during their tenure, up from the previous limits of Rs 80,000 and Rs 20,000, respectively.
The current adjustment follows the framework established in 2018 by then Finance Minister Arun Jaitley, who introduced a mechanism for automatic revision of parliamentary salaries and allowances every five years by indexing them to inflation. This system eliminated the previous practice where MPs made recommendations for fixing their own compensation.
“The increase in the salary has been notified in exercise of the powers granted under the Salary, Allowances and Pension of Members of Parliament Act on the basis of the Cost Inflation Index specified in the Income Tax Act of 1961,” the notification stated.
In addition to their salaries and allowances, MPs receive various other benefits, including accommodation options ranging from hostel rooms to bungalows in central Delhi. They also get reimbursements for utilities such as electricity, water, telephone, and internet charges. Travel benefits include reimbursement for 34 one-way air tickets annually between their constituency and Delhi for themselves and family members, plus rail travel concessions.
This salary revision comes after a period when MP compensation was temporarily reduced during the COVID-19 pandemic. In 2020, the government had implemented a 30 per cent cut in the salaries of MPs and ministers for one year as part of pandemic-related fiscal measures.