New Delhi, Mar 1: The Union Cabinet on Wednesday hiked the monthly allowances of parliamentarians by 55 per cent, increasing them collectively by Rs 40,000.

The Cabinet meet chaired by Prime Minister Narendra Modi made amendments to Housing and Telephone Facilities Rules (1956), Constituency Allowance Rules (1986) and Office Expense Allowance Rules (1988) for the Lok Sabha and Rajya Sabha MPs.

The allowance hike will impose additional financial burden on the exchequer to the tune of Rs 39 crore and Rs 6.64 crore -- on account of recurring and non-recurring expenditures respectively.

Hike in allowances: Details 

- Constituency allowance: Raised from Rs 45,000 to Rs 70,000

- Office Expense allowance: Hiked from Rs 45,000 to Rs 60,000

- Furniture allowance: Increased from Rs 75,000 to Rs 1 lakh (could be claimed only once in five years)

What is the salary of MPs after the hike in allowances?

The MPs are paid a basic salary of Rs 50,000. Demands have been raised by a section of lawmakers to increase their pay on lines of the 7th Pay Commission recommendations for the government employees.

Addressing the demand, Finance Minister Arun Jaitley while releasing the Budget document for FY18-19, announced the roll-out of an automatic pay hike mechanism for the lawmakers. As per the scheme, the salaries would be revised annually as per the prevailing inflation index.

The current salary of MPs, inclusive of all allowances and perks, amount to Rs 2.7 lakh per month. With the core allowances being hiked by 55 per cent or Rs 40,000 per month, the overall expense to be incurred by the government will be Rs 3.1 lakh.

(The above story first appeared on LatestLY on Mar 01, 2018 02:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).