Mps Vote Themselves A Hefty Salary Hike

Both Houses of Parliament yesterday took just a few minutes to vote themselves, by voice vote, a hefty salary package - adding up to around Rs 22,500 per month - virtually tax free, since most of it is by way of allowances.

The CPI(M) and the CPI jointly opposed the hikes. CPI(M) leader Biplab Dasgupta and CPI leader Gurudas Dasgupta walked out of the Rajya Sabha in protest. The new cash package is in addition to a secretarial allowance of Rs 6,000 (up from Rs 4,000) which is paid directly to an MP's secretary, and the free accommodation in Lutyens' Delhi, water, electricity, air and rail travel.

 

The new basic salary is Rs 4,000 per month, up from Rs 1500. Plus, the "constituency allowance" is up from Rs 6,000 to Rs 8,000. The daily allowance has been doubled, from Rs 200 a day to Rs 400 - to be drawn whenever members sign in at sessions or meetings.

The Mps will now get 25,000 units of electricity free, up from 15,000 units. The 2,000 kilolitres of free water has not been increased. The allowance for office expenses has been hiked, though, from Rs 1,500 a month to Rs 2,500.

An MP is now to get a pension of Rs 2,500 per month if he completes four years as a member, whether continuously or not. For every additional year, after the first five, a former member is to get an additional pension of Rs 500 per month. So, for instance, a member who has been an MP for 10 years would get a monthly pension of Rs 5,000.

Plus, the number of free air trips each is permitted has been increased from 28 to 32 per year, with they will now be able to use their unutilised quotas in subsequaent years.

All this is apart from the free air travel an MP is entitled to for sessions and committee meetings. There is no mechanism to prevent them from picking up the air fare for these trips even if they travel by train, which is free for them whenever they want to travel first class.

And their spouses can now travel travel free each time the MPs move from their homes to the capital - instead of only once every session.

The allowance to purchase a vehicle has been increased from Rs 50,000 to Rs 1 lakh, recoverable in 60 months at a 15 per cent rate of interest.

An MP is already entitled to a rent-free flat - though those with bunglows are liable to pay a nominal licensee fee. Besides, MPs are entitled to free furniture within a prescribed limit (Rs 24,000 for furniture and Rs 6,000 for furnishings) and reimbursement for the washing of sofa covers and curtains every three months.

Gradually, an MP's salary has overtaken that of a secretary to the Government of India, which was Rs 3,500 until January, 1986. It was then raised to Rs 8,000. With dearness allowance, it would have reached about Rs 15,000 in 1993. After the recent pay hikes, a secretary's gross salary is about Rs 29,000, but most secretaries take home about Rs 18,000, post-tax. An MP could now take home Rs 22,500 tax free. Parliament also passed three other bills to raise the salaries of the President, the Vice-president and Governors. The President's monthly emoluments have been raised from Rs 20,000 to Rs 50,000. His annual pension has been increased from Rs 1.2 lakh to Rs 3 lakh per annum. The emoluments of the Vice-President have been enhanced from Rs 14,500 to Rs 40,000 per month. A Governor's salary has been raised from Rs 11,000 to Rs 36,000 per month.