Centre notifies 24 per cent hike in salaries for MPs

The Ministry of Parliamentary Affairs also notified an increase in the daily allowances for sitting MPs and pension and additional pension for every year of service in excess of five years for former members. MPs can draw daily allowances while attending Parliament sessions and meetings of parliamentary committees.

The notification said that the daily allowance has been hiked from Rs 2,000 to Rs 2,500, and the pension for former MPs from Rs 25,000 per month to Rs 31,000 per month. The additional pension for every year of service in excess of five years has been increased from Rs 2,000 per month to Rs 2,500 per month.

The last hike in salaries given to MPs was in February 2018 — revised from Rs 50,000 to Rs 1 lakh.

Until February 2018, the Parliament had the power to pass laws to revise salaries of MPs. Then, through the Finance Act, 2018, Parliament amended the Salary, Allowances and Pension of Members of Parliament Act, 1954 to increase the salary, daily allowance, and pension of MPs every five years on the basis of the cost inflation index provided under the Income Tax Act.

In April 2020, during the Covid pandemic, the pension and allowances of MPs was slashed by 30 per cent for a year.