Centre Notifies 24% Hike in Salaries and Pensions for MPs

The Central Government on March 24, 2025, officially notified a 24% increase in the salaries of Members of Parliament (MPs), with the revised pay structure coming into effect from April 1, 2023. This marks the first revision since April 2018 and has been implemented under the Salary, Allowances and Pension of Members of Parliament Act in accordance with the Cost Inflation Index outlined 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

The Parliamentary Affairs Ministry emphasized that the increase aligns with the Cost Inflation Index (CII), ensuring that MPs’ earnings reflect rising inflation rates. The revision aims to offset increased living costs and provide financial stability to MPs and former legislators.

Previous Salary Revisions

The last salary revision occurred in April 2018, when the base pay was set at ₹1 lakh per month. Since then, no significant changes had been made, prompting the government to revise salaries and pensions after six years.

Other Benefits Provided to MPs

• Housing & Accommodation: MPs receive rent-free housing in New Delhi during their tenure. The allocation is based on seniority and can include hostel rooms, apartments, or bungalows.
• Housing Allowance: MPs who choose not to avail official accommodation are entitled to a monthly housing allowance.
• Travel & Constituency Allowance: Apart from the salary, MPs receive additional allowances for official travel and constituency-related expenses.

Summary of the News

Category	Previous Amount (₹)	Revised Amount (₹)	Increase (%)
MPs’ Monthly Salary	1,00,000	1,24,000	24%
Daily Allowance	2,000	2,500	25%
Former MPs’ Pension	25,000	31,000	24%
Additional Pension per Year Beyond Five Years	2,000	2,500	25%
Last Salary Revision	April 2018	–	–

This 24% salary hike aims to compensate for inflation and ensure that MPs can effectively perform their duties with financial security. The revision also provides better financial support for former MPs, acknowledging their contribution to the Indian legislative system.