The government has approved a 24% increase in the salaries and pensions of Members of Parliament (MPs). This increment will take effect retroactively from April 1, 2023. Allowances for MPs have also been raised. The government stated that the decision to raise salaries and pensions for public representatives is made in consideration of living costs and inflation rates. According to a notification issued by the Ministry of Parliamentary Affairs on Monday, with this hike, the monthly salary of MPs has increased from ₹1 lakh per month to ₹1.24 lakh, while their daily allowance has increased by 25% from ₹2,000 to ₹2,500. Former MPs' pensions have also been increased by 24%, from ₹25,000 to ₹31,000 per month.
According to the notification, this is the first such revision since April 2018, aimed at adjusting MPs' salaries in line with inflation. However, this increase has raised new questions regarding income disparity between MPs and the general populace. According to the Ministry of Statistics and Plan Implementation data, the estimated per capita income in India for 2022-23 was ₹1.72 lakh, or approximately ₹14,333 per month. These figures show that even a former MP now receives a pension that is double the average income of a common Indian, while the income of a current MP is about nine times higher than that of an average Indian.
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Rise in Income Disparity Between MPs and the Public
In addition to their salaries, MPs receive a daily allowance (benefit during parliamentary sessions), constituency allowance, free travel, and free government housing. The decision to increase MPs' salaries comes at a time when the common Indian is facing the pressure of inflation. During the last fiscal year, retail inflation in India remained above the Reserve Bank's set level of 4% for most of the time, with food prices witnessing sharp increases. In many sectors, especially the informal ones, salary increments are not aligned with living costs and inflation rates.
Data from the Periodic Labour Force Survey (PLFS) of 2022-23 reveals that the average salary of salaried employees in India is significantly lower than that of MPs. Furthermore, the issue of MPs deciding their own salary increases has been a topic of debate for a long time. Critics argue that instead of MPs determining their salary hikes through parliamentary voting, an independent commission should make such revisions.
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Annual Cost for a Single MP Reaches ₹42.9 Lakh
Following the increase in MPs' salaries and allowances, the government's total annual expenditure on MPs has risen significantly. Each MP now incurs an annual cost of approximately ₹42.9 lakh from the government treasury, including expenses on their salaries, allowances, and facilities. The 24% salary hike alone has made the annual salary expense ₹14.8 lakh. Additionally, MPs will receive a daily allowance of ₹2,500. Assuming a 100-day parliamentary session in a year, this equates to ₹2.5 lakh annually as daily allowance for an MP.
Total Annual Spending on All MPs Reaches ₹3,386.82 Crore
In addition to salaries and daily allowances, MPs receive a monthly constituency allowance of ₹70,000, amounting to ₹8.4 lakh annually, and an office expense of ₹60,000 per month, totaling ₹7.2 lakh per year. Furthermore, MPs are entitled to travel allowances and other facilities, with an estimated annual cost of ₹10 lakh per MP. Thus, the total annual expenditure on all 788 MPs (543 in Lok Sabha and 245 in Rajya Sabha) reaches approximately ₹3,386.82 crore, including salaries, allowances, office expenses, travel allowances, and other facilities.
