Government moves to double MPs’ salary to Rs 2.8 lakh a month, hike pensions

The proposal, currently with the Finance Ministry, also suggests that basic pension should be raised from Rs 20,000 per month to Rs 35,000.

Written by Liz Mathew | New Delhi | Updated: December 25, 2015 9:34 am
winter session, parliament session, parliament swinter session, lok sabha, lok sabha quorum, lok sabha adjourned, india news, latest news, parliament news, The government has proposed increasing the monthly salary of an MP from Rs 50,000 to Rs 1 lakh, constituency allowance from Rs 45,000 to Rs 90,000 and secretarial assistance plus office allowance from Rs 45,000 to Rs 90,000.

The central government seems set to double the salaries and allowances of Parliamentarians. If a proposal in this regard is approved by the Finance Ministry, every MP will get Rs 2.8 lakh per month. Their pension, too, will see a jump.

The government has proposed increasing the monthly salary of an MP from Rs 50,000 to Rs 1 lakh, constituency allowance from Rs 45,000 to Rs 90,000 and secretarial assistance plus office allowance from Rs 45,000 to Rs 90,000.

The proposal, currently with the Finance Ministry, also suggests that basic pension should be raised from Rs 20,000 per month to Rs 35,000. Those who have served for more than five years would get an additional amount — the number of years multiplied by Rs 2,000. Currently, the additional amount is the number of years multiplied by Rs 1,500.
Watch video MPs’ salary doubles

If the Finance Ministry agrees to allocate the amount, Parliament will amend the Salary, Allowance and Pension of Members of Parliament (Amendment) Bill to incorporate the changes, sources said. “The ministry is expected to accept the proposals,” said a top government official.

The Finance Minister had allocated Rs 295.25 crore for Lok Sabha MPs and Rs 121.96 crore for Rajya Sabha MPs — which includes expenses such as travel — in his last budget.

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The ministry has also agreed to the recommendations of the Joint Committee on Members’ Salary and Allowance regarding an increase in car loan and furniture allowance for MPs. The committee had suggested that the Rs 4 lakh car loan given to MPs should be increased. “It could be increased to an amount that is recoverable from MPs in five years,” said the source. Once the proposals, prepared by the Parliamentary Affairs Ministry, are implemented, wages of MPs will be higher than the government secretary’s salary.

The government, however, has decided not to agree to some other recommendations of the Joint Committee. “The government does not want to pamper the egos of Parliamentarians, but wants them to be adequately paid. The new salaries should take care of inflation too,” added the source.

The ministry decided to reject demands by the Joint Committee, headed by BJP MP Yogi Adityanath, to relax norms in amenities for MPs and former members. There were proposals to provide housing loans for MPs, special guest houses in all constituencies, housing societies, exemption from payment at toll plazas and canteen facilities along the lines of what armed forces personnel are entitled to. There was also a recommendation to increase their daily allowance from Rs 2,000 to Rs 4,000, which has not been accepted.