24% Salary Hike, Pension Hike For MPs; New Allowances Also Introduced


Mohul Ghosh

Mohul Ghosh

Mar 25, 2025


The Indian government has announced a 24% hike in the salaries of Members of Parliament (MPs), alongside an increase in pensions and additional allowances for former MPs. The Ministry of Parliamentary Affairs issued a notification regarding these changes, aligning the revisions with the Cost Inflation Index under the Income Tax Act of 1961.

24% Salary Hike, Pension Hike For MPs; New Allowances Also Introduced

Revised Salaries and Allowances for MPs

The following are the revised benefits for the sitting MPs:

These increments reflect the government’s attempt to adjust for inflation and ensure fair compensation for parliamentary duties.


Pension and Additional Pension for Former MPs

The revised structure also includes higher pensions and additional pensions for former members:

  • Base Pension: Increased from ₹25,000 to ₹31,000 per month
  • Additional Pension: For every year of service beyond five years, the additional pension has been increased from ₹2,000 to ₹2,500 per month

These adjustments are intended to provide better financial support to former MPs who have dedicated years of service to the nation.


Similar Moves in Karnataka

This central revision comes shortly after the Karnataka government approved a significant salary hike for its Chief Minister, ministers, and MLAs. The Chief Minister’s salary has doubled from ₹75,000 to ₹1.5 lakh per month. Similarly, the ministers’ salaries saw a 108% increase, from ₹60,000 to ₹1.25 lakh.

The Karnataka government’s decision was met with criticism, especially as it was passed without discussion amidst opposition protests.


Implications and Reactions

While the salary hikes aim to maintain parity with inflation rates, they have sparked public debate on the necessity and timing of the increase. Some argue that these adjustments are justifiable to ensure adequate remuneration for public representatives, while others call for stricter accountability and performance metrics in return for higher pay.

As the political landscape evolves, the government’s decisions on financial benefits for elected representatives will likely remain under scrutiny.


Summary

The Centre has announced a 24% hike in MPs’ salaries, increasing monthly pay from ₹1 lakh to ₹1.24 lakh. Daily allowances have risen to ₹2,500. Ex-MPs will receive higher pensions of ₹31,000 per month, with additional pensions increased to ₹2,500 per year of service. The decision follows Karnataka’s recent salary hikes for ministers and MLAs.


Mohul Ghosh
Mohul Ghosh
  • 2341 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Oct. 14, 2023

Startup Innovations: Guru4Invest’s Role in Democratizing Investment Opportunities

Access to capital has always been a significant challenge for startups. Traditional investment methods often leave small investors and new businesses at a disadvantage, with high barriers to entry and exclusive networks favoring established companies. Guru4Invest is changing this dynamic by leveraging cutting-edge artificial intelligence (AI) to level the playing field. The platform democratizes investment […]

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online