Members of Parliament Salary Hike

Members of Parliament Salary Hike 2025: Govt Approves 24% Raise, Effective from April 2023

The Central Government has approved a 24% increase in the salaries of Members of Parliament (MPs), marking the first revision in six years. This raise, officially notified on March 24, 2025, will be applied retrospectively from April 1, 2023. The decision affects both sitting MPs in the Lok Sabha and Rajya Sabha as well as former MPs receiving pensions. Implemented under the Salary, Allowances and Pension of Members of Parliament Act, the revision is based on the Cost Inflation Index (CII), aligning lawmakers’ compensation with India’s economic conditions.

This move not only acknowledges the increasing cost of living but also aims to provide financial stability and operational support for India’s public representatives. With updated salaries, revised pensions, and enhanced daily allowances, this overhaul has stirred conversations across the nation — from Parliament benches to public forums.

Table of Contents

1. What is the New Monthly Salary for Indian MPs in 2025?
2. How Much Pension Will Former MPs Receive After the Hike?
3. Why Did the Government Increase MP Salaries and Pensions?
4. When Was the Last Time MPs Got a Salary Increase?
5. What Are the Full Perks, Allowances, and Benefits for Indian MPs?
6. How Has the Public Reacted to the MP Salary Hike?
7. FAQs About MP Salary Hike in India
8. Conclusion: Is the Salary Hike Justified?

 What is the New Monthly Salary for Indian MPs in 2025?

As part of the new salary structure, sitting Members of Parliament will now receive ₹1.24 lakh per month, up from the previous ₹1 lakh. This reflects a 24% hike in basic salary, the first since 2018.

In addition to the revised salary:

• Daily allowance for parliamentary sessions has been raised from ₹2,000 to ₹2,500 per day.
• These daily compensations cover participation in committee meetings, debates, and other official duties.

This increase ensures that MPs are better equipped financially to carry out their responsibilities, especially in an era of rising operational costs and travel demands.

How Much Pension Will Former MPs Receive After the Hike?

Former Members of Parliament have also received a notable pension upgrade:

• Monthly pension increased from ₹25,000 to ₹31,000.
• For every additional year of service beyond five years, the pension increment rises from ₹2,000 to ₹2,500 per month.

This revision acknowledges the contributions of former MPs while ensuring their financial well-being in retirement, especially amidst ongoing inflationary pressures.

Why Did the Government Increase MP Salaries and Pensions?

The Ministry of Parliamentary Affairs clarified that the hike is not arbitrary. It is rooted in:

• The Cost Inflation Index (CII) under the Income Tax Act, 1961, making the adjustment systematic and transparent.
• A goal to reflect inflation trends, helping legislators maintain financial independence and dignity.
• Recognition that MPs incur substantial expenses related to:
  • Frequent travel
  • Constituency management
  • Office and staff maintenance

The revision is positioned as a functional necessity rather than a political move, supporting MPs’ ability to serve effectively and independently.

When Was the Last Time MPs Got a Salary Increase?

The last revision in MPs’ salaries was made in April 2018, when the basic monthly pay was set at ₹1 lakh. Since then, inflation has steadily risen, but salaries remained stagnant for over six years. This prolonged delay sparked parliamentary debates and public discourse, eventually leading to the 2025 revision.

The latest decision represents not just a monetary adjustment, but also an attempt to institutionalize salary changes through inflation-linked metrics like the CII. This could pave the way for more transparent and periodic revisions in the future.

What Are the Full Perks, Allowances, and Benefits for Indian MPs?

Besides salary and pension, MPs in India enjoy a range of perks and allowances to support their legislative and constituency duties:

 Housing in New Delhi

• Rent-free government accommodation is provided during an MP’s term.
• The type of housing (hostel, apartment, or bungalow) depends on seniority and availability.

Housing Allowance

• MPs who opt out of official housing receive a monthly housing allowance, offering flexibility.

 Travel and Constituency Allowances

• MPs are reimbursed for:
  • Travel within and outside their constituencies
  • Lodging and boarding during official visits
• Constituency allowance covers office staff, outreach programs, and local engagement efforts.

These benefits ensure MPs can perform their roles without facing financial limitations, particularly in rural or high-cost areas.

How Has the Public Reacted to the MP Salary Hike?

The announcement has generated mixed reactions:

Supporters Say:

• MPs need fair compensation to remain independent and focus on governance.
• The structured, inflation-linked revision model ensures transparency and avoids politically driven increases.
• The role of MPs has expanded with digital outreach, legislative complexity, and international diplomacy.

Critics Argue:

• The timing seems questionable, given broader economic challenges like unemployment and inflation.
• Public perception leans toward performance-based evaluations, suggesting that pay hikes should be tied to accountability metrics.
• Concerns have been raised over whether similar inflation-based hikes will apply to public sector employees or pensioners.

The debate highlights the ongoing tension between remuneration fairness and public trust in elected officials.

FAQs About MP Salary Hike in India

1. What is the current salary of an MP in India (2025)?

   As of April 2023 (with retrospective effect), MPs receive ₹1.24 lakh per month as their basic salary.

2. How much daily allowance do MPs receive now?

   MPs get a ₹2,500 per day allowance for attending Parliament sessions and committee meetings.

3. What is the revised pension for former MPs?

   Former MPs now receive ₹31,000 per month, with an additional ₹2,500 for each year served beyond five years.

4. Who decides the salary and pension structure for MPs?

   Revisions are governed by the Salary, Allowances and Pension of Members of Parliament Act, with adjustments tied to the Cost Inflation Index (CII).

5. Why was there a delay in the salary revision since 2018?

   Though inflation rose steadily, no updates were made for over six years. The 2025 revision is meant to catch up and create a more consistent, inflation-tied model.

Conclusion: Is the Salary Hike Justified?

The 24% salary hike for MPs, along with revised pensions and allowances, reflects a policy-driven attempt to align parliamentary compensation with economic realities. Rooted in the Cost Inflation Index, the move aims to enhance financial independence and operational efficiency for public representatives.

While the revision brings fairness and structure to MP remuneration, it also opens up important conversations about performance-based accountability, public trust, and the broader remuneration ecosystem in Indian governance.

As this framework sets a new precedent, it invites continuous dialogue on how elected officials should be compensated in a way that balances transparency, efficiency, and public sentiment.

Key Takeaways Table