 "Members of Parliament get 24% salary hike on Cost Inflation Index basis")
The Centre on Monday notified a 24 per cent salary hike for Members of Parliament (MPs) with effect from April 1, 2023, on the basis of the Cost Inflation Index. This would increase MPs’ salary from Rs 1 lakh to Rs 1.24 lakh.
The Ministry of Parliamentary Affairs’ notification also raised the daily allowance for sitting members from Rs 2,000 to Rs 2,500.
MPs are entitled to a daily allowance for attending the sittings of Parliament and meetings of parliamentary committees.
The Centre increased 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.
Article 106 of the Constitution empowers MPs to determine their salaries and allowances by enacting laws.
Until 2018, Parliament periodically passed laws to revise the salaries of MPs.
In 2018, via the Finance Act, which former Finance Minister Arun Jaitley tabled, Parliament amended the law for fixing the salary of MPs.
In 2018, the salary of MPs was increased from Rs 50,000 to Rs 1 lakh with the rule that their salary, daily allowance and pension will be revised every five years by indexing it to inflation. This did away with the practice of MPs making recommendations for fixing their salaries.
The increase in salary is now 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.
Apart from salary and pension, constituency allowance has been increased from Rs 70,000 to Rs 87,000 per month and ‘office expenses’ hiked from Rs 60,000 to Rs 75,000.
These provide for MPs required to hire a computer literate assistant with a monthly salary of Rs 50,000 and Rs 25,000 to purchase stationery.
MPs are also entitled to purchase durable furniture worth Rs 1 lakh and non-durable furniture of Rs 25,000 once during their tenure. Earlier, these entitlements were capped at Rs 80,000 for durable furniture and Rs 20,000 for non-durable furniture.
MPs are entitled to government accommodation, either at a hostel in Vitthalbhai Patel House or two-bedroom flats and bungalows in central Delhi.
They are also reimbursed for electricity, water, telephone and internet charges.
MPs and their families are also reimbursed for 34 one-way air tickets from their constituency to Delhi and get benefits on rail travel.
In 2020, during Covid-19, the government slashed the salaries of MPs and ministers by 30 per cent for one year, which was later restored.
In 1985, Parliament enacted a law that delegated to the central government the power to set and revise certain allowances of MPs, such as constituency allowance, office allowance and housing allowance.
The first legislative assembly of India came into existence in 1920 after passing of the Government of India Act, 1919, that implemented the Montague Chelmsford Reforms.
It was decided that members of the Assembly will get a Rs 15 allowance a day for each day of residence at the place where the Assembly met.
In May-June 1954, Parliament enacted the ‘Salary and Allowances of Members of Parliament Act, 1954.’
Over the course of the last seven decades, subsequent governments have extended facilities such as free or subsidised rail and air travel, accommodation at concessional rates and subsidised telephone, among others, to the MPs.
According to PRS Legislative Research, a think tank, allowances of Indian MPs differ from that of national legislators in countries such as the UK and US.
MPs in India are provided housing, whereas British MPs are provided an allowance to rent a house and there is no such allowance in the US. These countries provide office space which Indian MPs don’t get.
The allowance for hiring legislative assistants is significantly lower in India.