The Ministry of Parliamentary Affairs said the hike will be effective retrospectively from April 1, 2023. There has been a 24% hike in the salary as it raised to ₹1,24,000 per month from ₹1,00,000; daily allowance to ₹2,500 per day; pension to ₹31,000 per month. The additional pension for every year in service over five years to ₹2,500 per month from ₹2,000, the ministry added.
The change is made in the exercise of the powers granted by the Salary, Allowances, and Pension of Members of Parliament Act, 1954, and is based on the Cost Inflation Index as outlined in the Income-tax Act, 1961.
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Combining salary, constituency and office allowance, the salary now stands at ₹2,54,000 per month. MPs get a daily allowance when the House is in session.
The hike comes even as the second part of the Budget Session of Parliament has been a whitewash so far.
Salary hike in the corporate sector
The hike is in contrast with several surveys pegging India Inc’s average salary hike in the range of 9 to 9.5% this year.
Also, India’s largest IT services firms will defer annual salary hikes in the current financial year (FY25).
Last salary hike
The last hike was in 2018 when the salary of an MP was raised to ₹1,00,000 per month. In 2018, late finance minister Arun Jaitley proposed a law for an automatic revision of salaries for MPs every five years indexed to inflation.
Perks and benefits
MPs enjoy a range of salaries, allowances, and perks. Apart from salary, MPs get ₹70,000 per month as Constituency Allowance and another ₹60,000 as office allowance.
In terms of perks and benefits, MPs get free medical care for themselves and their families. They can avail of 34 domestic flights annually and unlimited first-class train travel for both personal and official purposes.
MPs get rent-free accommodation in the heart of New Delhi. They also get telephone benefits of ₹1.5 lakh per year for communication expenses.
For utilities, MPs get 50,000 units of free electricity and 4 lakh litres of free water annually.
