Increase of 24% in MP Salaries Beginning April 1st
India Announces 24% Increase in MP Salaries, Tied to Inflation Index
Effective from April 1, 2023, Members of Parliament (MP) in India will see a significant increase in their salaries, allowances, and pensions, as part of an automatic salary revision linked to the Cost Inflation Index prescribed under the Finance Act, 2018.
The new rates for MP remunerations have been determined according to the Salary, Allowances and Pension of Members of Parliament Act and the Cost Inflation Index specified in the Income-Tax Act of 1961. This mechanism ensures that MP salaries keep pace with inflation, reflecting current economic conditions and compensating for the wide-ranging responsibilities of parliamentarians.
The monthly basic salary for Rajya Sabha MPs has been raised from ₹1,00,000 to ₹1,24,000 following this policy. This revision follows a five-year or so periodic review cycle dependent on inflation trends, and it was the first such adjustment since 2018.
Key points of the salary revision include:
- Basic Pay raised by 24% to ₹1,24,000 per month from ₹1,00,000.
- Revision linked automatically to inflation indices for transparency and consistency.
- Encourages retention of experienced legislators by ensuring pay keeps pace with the economy.
This approach contrasts with salary hikes based on pay commissions for government employees, which are subject to committee recommendations and wider consultations and may result in different hike percentages.
In addition to the salary increase, the daily allowance for sitting members has been increased from Rs 2,000 to Rs 2,500. The additional pension for each year of service beyond five years has been increased from Rs 2,000 to Rs 2,500. For former members, the monthly pension has been raised from Rs 25,000 to Rs 31,000.
The Union government has also announced that arrears for the salary increase will be released shortly. This policy aims to maintain the real value of MPs' pay in the face of rising living costs and to uphold fair compensation aligned with their duties.
[1] Source: [Link to official announcement or press release] [2] Source: [Link to article discussing government employee salary hikes] [3] Source: [Link to article discussing pay commissions for government employees]
The salary adjustment for Members of Parliament (MP) in India is now tied to the Cost Inflation Index, a move that falls under the policy-and-legislation category. This change in MP remunerations, following the Salary, Allowances and Pension of Members of Parliament Act, is part of the politics landscape, as it affects the general-news topic of compensation for public officials.
