NEW DELHI: The Ministry of Parliamentary Affairs has announced a 24% salary hike for Members of Parliament (MPs) and former MPs, effective April 1, 2023. The revision increases MPsโ monthly salaries from โน1,00,000 to โน1,24,000, along with proportional adjustments in allowances and pensions.
The decision, part of a structured mechanism linking MP salaries to inflation, aims to prevent arbitrary pay hikes and maintain financial discipline.
Previously, salary hikes for MPs were decided through discretionary parliamentary debates, often leading to political controversies. However, in 2018, the Modi government introduced a reform linking MPsโ salaries to the Cost Inflation Index (CII) under the Income Tax Act, 1961. This change ensured that pay adjustments occur automatically every five years in alignment with inflation, removing the need for frequent legislative intervention.
According to this mechanism, the base salary of an MP in 2018 was set at โน1,00,000 per month. Over five years, inflation adjustments have led to the current increase to โน1,24,000, reflecting an average annual increment of 4.8%.
PM Modiโs Stand Against MPs Deciding Their Salaries
The move aligns with PM Narendra Modiโs stance against MPs determining their own salaries. Since 2016, Modi has consistently advocated for an independent body or an automatic adjustment mechanism for salary hikes, ensuring fairness and transparency. This approach eliminates politically motivated increases and strengthens public confidence in governance.
โMPs should not decide their pay packages. It should be determined by a structured process, just like other government salary revisions,โ Modi stated in 2016 when pushing for reforms in the salary determination process.
Comparison with Previous Salary Hikes
Before the 2018 reforms, salary revisions were irregular and often triggered public backlash. For instance, in 2010, MPs received a threefold salary hike, from โน16,000 to โน50,000, a move that sparked controversy. Some leaders, including Mulayam Singh Yadav and Lalu Prasad Yadav, had even demanded a fivefold increase, citing rising costs and the nature of their responsibilities.
The current inflation-based mechanism ensures a more systematic and accountable approach.
Allowances and Benefits for MPs
In addition to their revised salaries, MPs also receive various allowances and benefits, including:
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Constituency Allowance: โน70,000 per month
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Daily Allowance: โน2,000 per day when attending parliamentary sessions
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Travel, Housing, and Utility Perks: Free accommodation, phone, electricity, and flight/train travel benefits
These perks, considered essential for public representatives, often attract scrutiny, with critics questioning whether MPs require such extensive benefits. However, government officials argue that these provisions help MPs fulfill their legislative and constituency duties effectively.
Temporary Pay Cut During COVID-19 Pandemic
It is notable that, as a cost-cutting measure during the COVID-19 crisis, the government implemented a temporary 30% salary reduction for MPs and ministers in April 2020. This reduction was enforced for one year to redirect funds toward pandemic relief efforts.
Comparison with State Legislatorsโ Pay Hikes
While the salary hike for MPs follows a structured inflation-based model, many state governments continue to increase MLAsโ and ministersโ salaries arbitrarily, without a fixed formula.
For example:
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In 2025, Karnataka CM Siddaramaiah approved a 100% salary hike for himself and state ministers. His salary doubled from โน75,000 to โน1.5 lakh per month, while ministersโ salaries rose from โน60,000 to โน1.25 lakh.
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In 2023, Delhi CM Arvind Kejriwal approved a 136% salary hike for himself, raising his salary to โน1.7 lakh per month, and MLAs received a 66% increase to โน90,000.
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In 2024, Jharkhand CM Champai Sorenโs cabinet approved a 50% salary hike for MLAs, citing inflation.
Critics argue that such arbitrary increases burden state exchequers, while the inflation-linked mechanism for MPs ensures fiscal responsibility at the national level.
Ensuring a Fair and Transparent Salary Structure
The 24% salary hike for MPs marks a crucial step in establishing a fair and systematic pay structure. Unlike state-level salary hikes, which often depend on political discretion, the parliamentary mechanism ensures that increases remain linked to economic indicators.
By implementing automatic adjustments based on inflation, the government has removed the need for MPs to approve their own pay hikes, strengthening transparency and public trust. However, the debate over MP salaries and allowances is far from over, as public scrutiny remains high on the necessity of extensive benefits for elected officials.
