Centre Notifies 24% Salary, Allowance, and Pension Hike for MPs
Centre Notifies 24% Salary, Allowance, and Pension Hike for MPs
The central government has officially notified an increase in the salary, daily allowance, and pension of Members and former Members of Parliament. This revision, which will take effect from April 1, 2023, has been made under the provisions of the Salary, Allowances and Pension of Members of Parliament Act, in accordance with the Cost Inflation Index specified in the Income Tax Act of 1961.
Revised Benefits for MPs
The key changes in salaries, allowances, and pensions for Members of Parliament are as follows:
– Salary: The monthly salary for MPs has been increased from ₹1,00,000 to ₹1,24,000.
– Daily Allowance: The daily allowance for MPs has been raised from ₹2,000 to ₹2,500.
– Pension for Former MPs: The monthly pension for former MPs has been revised from ₹25,000 to ₹31,000.
– Additional Pension: The additional pension for every year of service beyond five years has been increased from ₹2,000 per month to ₹2,500 per month.
Justification for the Hike
The government has justified the 24% increase in salaries and allowances by citing the rising cost of living and inflation. The adjustment is based on the Cost Inflation Index as per the Income Tax Act of 1961, ensuring that MPs receive adequate compensation in line with economic changes.
Political Reactions
The salary hike for MPs comes at a time when the country is grappling with economic challenges. While the increase in salaries and pensions has been welcomed by some lawmakers, others have questioned the timing of the decision. Critics argue that such hikes should be accompanied by improvements in public welfare measures and better governance.
Karnataka Government Approves 100% Salary Hike for CM, Ministers, and MLAs
This notification also comes just days after the Karnataka government approved a **100% salary hike** for its chief minister, ministers, and MLAs. The state government’s decision has drawn mixed reactions from the public and opposition parties, who have raised concerns over the prioritization of lawmakers’ salaries over pressing public issues.
Public Perception and Economic Considerations
The decision to increase MPs’ salaries and allowances is likely to generate debates among citizens and policymakers. While some argue that legislators should receive fair compensation to prevent corruption and ensure effective governance, others believe that public funds should be allocated more towards social welfare programs, infrastructure, and economic development.
Moreover, at a time when many sectors are still recovering from the financial impact of the COVID-19 pandemic and inflation remains a major concern, such salary hikes may not sit well with the general public.
The revised salary, daily allowance, and pension structure for Members of Parliament will come into effect from April 1, 2023. While the government maintains that the hike aligns with inflation and cost-of-living adjustments, the decision is expected to spark discussions on the broader issue of public expenditure and financial priorities in governance.
As the second leg of the budget session 2025 continues, it remains to be seen how this decision will be received across different political and economic spheres.
