The Central Government announced on March 24, 2025, a 24% salary increase for Members of Parliament (MPs), which will take effect on April 1, 2023. This marks the first pay revision since April 2018 and is being carried out under the Salary, Allowances and Pension of Members of Parliament Act, aligned with the Cost Inflation Index mentioned in the Income Tax Act of 1961.
Key Highlights of the Salary Hike
Revised Salaries for Sitting MPs
- The monthly salary of Lok Sabha and Rajya Sabha MPs has been increased from ₹1 lakh to ₹1.24 lakh, a 24% hike.
- The daily allowance has been raised from ₹2,000 to ₹2,500.
Pension Hike for Former MPs
- The pension for former MPs has been increased from ₹25,000 to ₹31,000 per month.
- The additional pension for each year of service beyond five years has been raised from ₹2,000 to ₹2,500 per month.
Government Justification for the Salary Hike
According to the Parliamentary Affairs Ministry, the increase is aligned with the Cost Inflation Index (CII), ensuring that MPs’ pay keeps up with inflation. This revision is meant to help counteract the rising cost of living and provide financial security for both current MPs and those who have served in the past.
