Salary of Indian MPs Hiked: Centre Clears 100% Pay Rise For Members of Parliament

New Delhi, March 22: Amid continues disruptions to stymie Parliament's functioning, the government on Thursday cleared the MP Bonanza and has increased their salaries. Much to the happiness of Members of Parliament in India, the government approved a 100% hike in their monthly allowances. With the new bonanza, the constitutional allowance has been hiked to Rs 30,000, Office allowance hiked to Rs 30,000 while furniture allowance has been hiked to Rs 75,000 for all the MPs.

In the last month, in a meeting chaired by Prime Minister Narendra Modi, the cabinet approved the amendment to allowance rules effective from 1 April, which will have additional financial implication of more than Rs 39 crore and Rs 6.64 crore on account of recurring and non-recurring expenditures respectively. As per reports, all the allowances will automatically increase after every five years starting from 1 April 2023 on the basis of cost inflation index.

With the latest decision, MPs will now be paid to Rs 1 Lac per month as basic pay instead of Rs 50,000 per month at present. Apart from the monthly hike in salaries, the furniture allowance which is being paid to the parliamentarians once in five years, is also increased to Rs 1 lakh from Rs 75,000.

In his budget speech, Union Finance Minister Arun Jaitley had already announced that a permanent mechanism would be set up to revise the salaries of MPs every five years, and it would be linked to inflation. It must be noted the decision of the cabinet was conveyed to Joint Committee on Salaries and Allowances of Members of Parliament for making amendments in the relevant rules.

(The above story first appeared on LatestLY on Mar 22, 2018 06:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).