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    Home»News»Compensation & Benefits»Centre approves 24% salary hike for MPs, effective retrospectively from 2023
    Compensation & Benefits

    Centre approves 24% salary hike for MPs, effective retrospectively from 2023

    Parliamentarians’ monthly compensation to increase to Rs 1.24 lakh, with pension rising to Rs 31,000
    HRK News BureauBy HRK News BureauMarch 24, 20252 Mins Read10452 Views
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    The Central Government has officially notified a 24 per cent hike in the salaries of Members of Parliament, effective retrospectively from April 1, 2023. The increase, based on the Cost Inflation Index, was announced today through a notification issued by the Ministry of Parliamentary Affairs.

    According to the notification, a Member of Parliament will now receive Rs 1.24 lakh per month as salary, up from the previous Rs 1 lakh. The daily allowance for sitting members has also been increased from Rs 2,000 to Rs 2,500.

    Former parliamentarians will benefit as well, with pension payments rising from Rs 25,000 to Rs 31,000 per month. Additionally, the extra pension amount for each year of service beyond the initial five years has been raised from Rs 2,000 to Rs 2,500 per month.

    With the inclusion of constituency allowance (Rs 70,000) and office allowance (Rs 60,000), MPs will now receive a total monthly remuneration package of Rs 2,54,000.

    Revised Salary & Allowances

    • Monthly Salary: MPs will now receive Rs 1.24 lakh, up from Rs 1 lakh.

    • Daily Allowance: Raised to Rs 2,500 per day from Rs 2,000 for days when Parliament is in session.

    • Pension: Former MPs will now receive Rs 31,000 per month, up from Rs 25,000.

    • Additional Pension: Increased from Rs 2,000 to Rs 2,500 per month for each year of service beyond five years.

    The salary revision has been implemented under the powers granted by the Salary, Allowances and Pension of Members of Parliament Act, 1954, and is tied to the Cost Inflation Index specified in the Income Tax Act of 1961.

    This marks the first salary adjustment for parliamentarians since 2018, when their monthly compensation was increased to Rs 1 lakh. During that revision, late Finance Minister Arun Jaitley had introduced a proposal for automatic salary revisions every five years linked to inflation.

    Beyond their basic salary, MPs enjoy several additional benefits, including free medical care for themselves and their families, 34 domestic flights annually, unlimited first-class train travel, rent-free accommodation in New Delhi, communication allowances of Rs 1.5 lakh per year, as well as 50,000 units of free electricity and 4 lakh litres of free water annually.

    The parliamentary pay increase comes shortly after the Karnataka government approved a controversial 100 per cent salary hike for its Chief Minister, Ministers, and MLAs, which sparked heated debate in the state assembly.

    1954 Allowances and Pension of Members of Parliament Act Central Government constituency allowance Cost Inflation Index Former parliamentarians Ministry of Parliamentary Affairs pension salaries of Members of Parliament Salary salary adjustment for parliamentarians
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