Winning Bizness Desk
Mumbai. The central government has announced a 24% increase in the salary, pension, and daily allowance (DA) of Members of Parliament (MPs). The monthly salary of MPs has been raised from ₹1,00,000 to ₹1,24,000, while their daily allowance has increased from ₹2,000 to ₹2,500. Additionally, former MPs' pensions have been increased from ₹25,000 to ₹31,000 per month.
The Ministry of Parliamentary Affairs has issued a notification stating that the revised salaries and pensions will be effective from April 1, 2023. The changes have been made under the Members of Parliament Salary, Allowances, and Pension Act, 1954, considering the rising inflation.Revised Salary and Allowances for MPs
- MPs' monthly salary: Increased from ₹1,00,000 to ₹1,24,000.
- Daily allowance: Raised from ₹2,000 to ₹2,500.
- Former MPs' monthly pension: Increased from ₹25,000 to ₹31,000.
- Additional pension for service beyond five years: Increased from ₹2,000 to ₹2,500 per month.
Inflation-Based Hike
The government justified the salary revision by citing the rising Cost Inflation Index (CII) over the past five years. The decision was made based on inflation rates determined by the Reserve Bank of India (RBI) and is expected to benefit both current and former MPs.Impact of Karnataka Legislative Assembly’s Decision
This decision follows a recent move by the Karnataka government, which approved a 100% salary hike for the Chief Minister, ministers, and MLAs. The move had sparked heated debates in the Karnataka Assembly. The decision was passed through two amendment bills:
1. Karnataka Ministers' Salaries and Allowances (Amendment) Bill, 2025
2. Karnataka Legislature Members' Salaries, Pensions, and Allowances Bill, 2025
DA Hike for Government Employees?
Government employees have also been waiting for a Dearness Allowance (DA) hike. Reports suggest that the government might announce the DA increase in the next Cabinet meeting, expected next week. If approved, the revised DA will be effective from January 2025, and employees will receive arrears for January, February, and March along with their April 2025 salary.
Key Decisions
- April 1, 2023 – New salary structure for MPs becomes effective.
- March 2025 – Karnataka government approves 100% salary hike for MLAs.
- Next week (expected) – Cabinet meeting may approve DA hike for government employees.
- April 2025 – Government employees likely to receive revised DA with arrears.
