MPs are getting a 24% salary hike—daily allowance and pension also increased. What's the new pay?

The Central government has officially announced a 24% rise in the salary for Members of Parliament, effective from April 1, 2023. It has also announced a 25% raise in their daily allowance and a 24% hike in pension for MPs and ex-MPs.

According to a circular from the Ministry of Parliamentary Affairs, the monthly salary for Members of Parliament will rise from Rs 1,00,000 to Rs 1,24,000. Their daily allowance has been increased from Rs 2,000 to Rs 2,500. 

The monthly pension for both MPs and ex-MPs has been revised from Rs 25,000 to Rs 31,000. Additionally, ex-MPs will see an increase in their additional pension per year of service from Rs 2,000 to Rs 2,500. 

"In Exercise of the powers conferred by sub-section (2) of section 3 ad sub-section (1A) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954), the Central Government hereby notifies the increase in the salary, daily allowance, pension and additional pension of Members and Ex-Members of Parliament on the basis of Cost Inflation specified under clause (v) of the Explanation to section 48 of the Income-Tax Act, 1961 (43 of 1961), with effect from 1st April, 2023," states the official notification. 

The salary increase for MPs is grounded in inflationary adjustments as specified by the Income-Tax Act, 1961. The adjustment reflects the Central Government's initiative to align public salaries with rising living costs across the nation. 

The Centre's financial changes are part of a broader trend to ensure that the remuneration of public officials keeps pace with inflation, thereby maintaining their financial viability. This follows the statutory powers outlined by the Salary, Allowances, and Pension of Members of Parliament Act, 1954. 

The Centre's decision follows closely on the heels of the Karnataka government's recent approval of a 100% salary increase for its Chief Minister, Ministers, and MLAs, which has sparked significant discussions. In response to these developments, BJP, led by R Ashoka, protested against the government's decision to provide a four per cent reservation to Muslims in public contracts.