New Delhi, March 24, 2025 – In a significant move, the Central government has approved a substantial hike in the salaries, allowances, and pensions of Members of Parliament (MPs) and former MPs, effective from April 1, 2023. The decision, notified late Sunday, has sparked a mix of applause and debate, with the monthly salary of parliamentarians rising from Rs 1 lakh to Rs 1.24 lakh—a 24% jump linked to the Cost Inflation Index.
A Well-Timed Raise
The announcement, detailed in a gazette notification by the Ministry of Law and Justice, comes amidst ongoing discussions on governance and economic priorities. Alongside the salary increase, MPs will see their daily allowance climb from Rs 2,000 to Rs 2,500, reflecting the demands of their rigorous schedules. Pensions for ex-MPs have also been boosted, moving from Rs 25,000 to Rs 31,000 per month, with an additional pension of Rs 2,500 (up from Rs 2,000) for every year served beyond the initial five.
This adjustment, backdated to April 2023, aligns with inflation trends, ensuring that lawmakers’ compensation keeps pace with rising costs. “It’s a pragmatic step,” a senior official told NDTV, emphasizing that the last revision occurred years ago, leaving MPs’ earnings out of sync with economic realities.
What’s in the Package?
The revised benefits extend beyond salaries. Key highlights include:
- Constituency Allowance: Upped from Rs 70,000 to Rs 87,000 monthly, aiding MPs in grassroots outreach.
- Office Expenses: Increased to Rs 74,400 from Rs 60,000, covering staff salaries and operational costs.
- Travel Perks: Enhanced provisions for free rail and air travel, a nod to the extensive mobility required of parliamentarians.
These changes, outlined in amendments to the Salary, Allowances and Pension of Members of Parliament Act, 1954, aim to bolster MPs’ ability to serve constituents effectively. The notification also ensures that pension benefits for former MPs’ families remain intact, with adjustments mirroring the new rates.
A Polarizing Move
While some hail the hike as long overdue, others question its timing and optics. The average Indian worker’s annual raise hovers around 9% (Economic Times, 2024), totalling roughly 18.8% over two years—still lagging behind the MPs’ 24% boost. Critics, including voices on X, have dubbed it a “clownish gap,” pointing to the disparity at a time when inflation pinches the common man.
The BJP-led government defends the decision, arguing that MPs shoulder immense responsibilities—legislative, representational, and constituency-related—that justify the adjustment. “They’re not just sitting in AC rooms; they’re on the ground, addressing people’s issues,” a party spokesperson told ANI. Yet, opposition leaders have pounced, with Congress MP Jairam Ramesh calling it “a tone-deaf move” amid economic strain on citizens.
Numbers Tell a Story
India’s 543 Lok Sabha and 245 Rajya Sabha MPs collectively represent over 1.4 billion people, a staggering ratio that underscores their workload. Data from PRS Legislative Research shows MPs attend over 100 sittings annually, alongside committee meetings and constituency visits. Yet, public sentiment, as reflected in posts on X, questions whether performance matches pay.
The hike follows Karnataka’s recent doubling of legislators’ salaries (NDTV, March 22), signaling a broader trend of revisiting lawmakers’ compensation. However, with the 2024 Lok Sabha elections still fresh in memory, the move risks fueling narratives of political privilege.
Looking Ahead
As the revised salaries roll out, the focus shifts to accountability. Will this financial boost translate into better governance, or will it widen the trust deficit? For now, the notification stands as a bold statement—one that Parliament hopes will strengthen its members’ resolve to serve, even as the nation watches closely.