The Ministry of Parliamentary Affairs has announced an increase in the salary, daily allowance, and pension for Members of Parliament (MPs) and former MPs. This change will take effect from April 1, 2023 and aims to adjust for inflation and higher living costs.
The government made this decision under the Salary, Allowances, and Pension of Members of Parliament Act, 1954. The increase is based on the Cost Inflation Index under the Income-tax Act, 1961.
New Salary and Allowances for MPs
The government has raised four types of payments: monthly salary, daily allowance, pension for retired MPs, and extra pension for long-serving MPs. Below is a comparison of the old and new amounts:
| S. No. | Category | Old Amount (₹) (since 2018) | New Amount (₹) (from 2023) |
|---|---|---|---|
| 1. | Salary | ₹1,00,000 per month | ₹1,24,000 per month |
| 2. | Daily Allowance | ₹2,000 | ₹2,500 |
| 3. | Pension (for retired MPs) | ₹25,000 per month | ₹31,000 per month |
| 4. | Extra Pension (for each additional year after 5 years of service) | ₹2,000 per month | ₹2,500 per month |
Main Changes
- Higher Monthly Salary: MPs will now receive ₹1,24,000 per month instead of ₹1,00,000.
- Increased Daily Allowance: The amount MPs get for attending Parliament sessions has gone up from ₹2,000 to ₹2,500 per day.
- More Pension for Retired MPs: Former MPs will now get ₹31,000 per month, instead of ₹25,000.
- Extra Pension for Long Service: MPs who serve more than five years will now receive ₹2,500 per month for each extra year, up from ₹2,000.
Why Did the Government Approve This Increase?
The last salary increase was in 2018, and since then, the cost of living has risen. This new revision ensures that MPs and former MPs receive fair compensation.
The higher pensions will also help former MPs who may not have other income sources after leaving Parliament.
Official Notification
This increase was officially approved and announced by the Ministry of Parliamentary Affairs. The notification was issued under file number 4/3/2022-ME and was signed by Dr. Satya Prakash, Additional Secretary.
The new salaries and benefits will start from April 1, 2023.