The Central Government has officially notified a salary, allowance, and pension increase for Members and Ex-Members of Parliament, effective April 1, 2023. This revision comes under the provisions of the Salary, Allowances, and Pension of Members of Parliament Act, 1954, and is adjusted based on Cost Inflation Index under the Income-Tax Act, 1961.

Key Revisions in Salary, Allowance, and Pension

• Monthly salary of MPs has been increased from Rs 1,00,000 to Rs 1,24,000, marking a 24% increase.

• Daily allowance has been revised from Rs 2,000 to Rs 2,500, benefiting MPs attending parliamentary sessions.

• Pension for Ex-MPs has been hiked from Rs 25,000 to Rs 31,000, ensuring enhanced post-service financial security.

This decision follows the Karnataka government’s recent approval of a 100% salary hike for its Chief Minister, Ministers, and MLAs, which triggered debates on public funds allocation for legislators.

Rationale Behind the Salary Hike

The cost of living and inflationary pressures have necessitated periodic revisions in MP salaries and allowances. The government justified this increase by citing the rising operational costs for MPs, who must frequently travel, engage with constituents, and manage legislative responsibilities.

Public and Political Reactions

The announcement has received mixed reactions. While some political analysts argue that MPs deserve fair compensation for their work, critics highlight that public sector wages and welfare schemes should also see proportional increases.

Comparative Analysis: Salaries of MPs Globally

India’s MPs, despite this increase, earn relatively less than their counterparts in developed nations:

• United States: $174,000 per annum (approx. Rs 1.45 crore per year)

• United Kingdom: £86,584 per annum (approx. Rs 91 lakh per year)

• Germany: €120,000 per annum (approx. Rs 1.08 crore per year)

Implications for Future Revisions

With inflation and economic conditions constantly evolving, experts suggest that MP salary revisions should be linked to economic performance, ensuring a balanced approach between governance expenses and public interest.

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With the salary and pension revision for MPs, the discussion around legislator compensation and public resource allocation continues. Stay updated with the latest financial and political developments to make informed investment and policy-related decisions.