The central government on Monday announced a 24 percent hike in the salaries of members of Parliament, which will be effective from April 1, 2023. An MP will now get a salary of Rs 1.24 lakh per month, compared to Rs 1 lakh per month he received so far.

The calculation for the increase will be done on the basis of cost inflation index.

The Ministry of Parliamentary Affairs also notified an increase in daily allowances for sitting MPs and pension and additional pension for former MPs for more than five years of service. MPs can receive daily allowances while attending parliamentary sessions and parliamentary committee meetings.

The announcement said that the daily allowance has been increased from Rs. 2,000 to Rs. 2,500 and the pension of former MPs has been increased from Rs. 25,000 to Rs. 31,000 per month. The additional pension for more than five years of service has been increased from Rs. 2,000 to Rs. 2,500 per month.

The last salary increase for MPs was in February 2018 – it was revised from Rs. 50,000 to Rs. 100,000.

Until February 2018, Parliament had the power to pass laws to revise the salaries of MPs. Then, through the Finance Act 2018, Parliament amended the Salaries, Allowances and Pensions of Members of Parliament Act 1954 to increase the salaries, daily allowances and pensions of Members of Parliament every five years, based on the cost inflation index provided under the Income Tax Act.

In April 2020, during the Covid pandemic, the pensions and allowances of Members of Parliament were cut by 30 percent per year.