“Parliamentary compensation must reflect economic realities while maintaining public trust and accountability.” — Core principle behind the 2025 MP salary revision
The Central Government has approved a 24% increase in the salaries of Members of Parliament (MPs), marking the first revision in six years. This raise, officially notified on March 24, 2025, will be applied retrospectively from April 1, 2023.
The decision affects both sitting MPs in the Lok Sabha and Rajya Sabha as well as former MPs receiving pensions. Implemented under the Salary, Allowances and Pension of Members of Parliament Act, the revision is based on the Cost Inflation Index (CII), aligning lawmakers’ compensation with India’s economic conditions.
💰 New Monthly Salary for Indian MPs in 2025
As part of the new salary structure, sitting Members of Parliament will now receive ₹1.24 lakh per month, up from the previous ₹1 lakh. This reflects a 24% hike in basic salary, the first since 2018.
In addition to the revised salary:
- Daily allowance for parliamentary sessions has been raised from ₹2,000 to ₹2,500 per day
- These daily compensations cover participation in committee meetings, debates, and other official duties
This increase ensures that MPs are better equipped financially to carry out their responsibilities, especially in an era of rising operational costs and travel demands.
Think of it like an annual increment at a job, but for MPs it came after 6 years. Just as your salary should keep up with rising prices (inflation), MPs’ pay is now linked to the Cost Inflation Index — the same metric used to calculate capital gains tax adjustments. This makes future revisions more automatic and less political.
| Component | Before (2018) | After (2025) | Change |
|---|---|---|---|
| Basic Salary | ₹1,00,000/month | ₹1,24,000/month | +24% |
| Daily Allowance | ₹2,000/day | ₹2,500/day | +25% |
| Basic Pension | ₹25,000/month | ₹31,000/month | +24% |
| Additional Pension (per year after 5 years) | ₹2,000/month | ₹2,500/month | +25% |
🏛️ Revised Pension for Former MPs
Former Members of Parliament have also received a notable pension upgrade:
- Monthly pension increased from ₹25,000 to ₹31,000
- For every additional year of service beyond five years, the pension increment rises from ₹2,000 to ₹2,500 per month
This revision acknowledges the contributions of former MPs while ensuring their financial well-being in retirement, especially amidst ongoing inflationary pressures.
Pension Formula: Base ₹31,000 + (₹2,500 × years served beyond 5). So a former MP who served 10 years gets: ₹31,000 + (₹2,500 × 5) = ₹43,500/month.
📜 Why Did the Government Increase MP Salaries?
The Ministry of Parliamentary Affairs clarified that the hike is not arbitrary. It is rooted in:
- The Cost Inflation Index (CII) under the Income Tax Act, 1961, making the adjustment systematic and transparent
- A goal to reflect inflation trends, helping legislators maintain financial independence and dignity
- Recognition that MPs incur substantial expenses related to frequent travel, constituency management, and office/staff maintenance
The revision is positioned as a functional necessity rather than a political move, supporting MPs’ ability to serve effectively and independently.
The CII-linked model could fundamentally change how MP salaries are revised in future. Instead of politically sensitive parliamentary debates every few years, adjustments could become more automatic — similar to how DA (Dearness Allowance) works for government employees. Is this more democratic, or does it reduce public oversight?
✨ Full Perks, Allowances & Benefits for Indian MPs
Besides salary and pension, MPs in India enjoy a range of perks and allowances to support their legislative and constituency duties:
🏠 Housing in New Delhi:
- Rent-free government accommodation is provided during an MP’s term
- The type of housing (hostel, apartment, or bungalow) depends on seniority and availability
- MPs who opt out of official housing receive a monthly housing allowance
✈️ Travel and Constituency Allowances:
- Reimbursement for travel within and outside constituencies
- Lodging and boarding during official visits
- Constituency allowance covers office staff, outreach programs, and local engagement efforts
These benefits ensure MPs can perform their roles without facing financial limitations, particularly in rural or high-cost areas.
Don’t confuse: MP salary (₹1.24 lakh) with total compensation. The basic salary is just one part — when you add housing, travel, constituency allowances, and other perks, the effective monthly package is significantly higher. Exam questions often test this distinction.
🗣️ Public Reaction to the MP Salary Hike
The announcement has generated mixed reactions across the political spectrum and public forums:
Supporters argue:
- MPs need fair compensation to remain independent and focus on governance
- The structured, inflation-linked revision model ensures transparency and avoids politically driven increases
- The role of MPs has expanded with digital outreach, legislative complexity, and international diplomacy
Critics counter:
- The timing seems questionable, given broader economic challenges like unemployment and inflation affecting common citizens
- Public perception leans toward performance-based evaluations — pay hikes should be tied to accountability metrics
- Concerns about whether similar inflation-based hikes will apply to public sector employees or pensioners
The debate highlights the ongoing tension between remuneration fairness and public trust in elected officials.
This topic invites debate on accountability vs. compensation. Consider: Should MP salaries be linked to attendance records or legislative performance? How do Indian MP salaries compare globally? Does higher pay reduce corruption or is that a myth? These are excellent GD/PI discussion points.
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The new monthly salary for MPs is ₹1.24 lakh, increased from ₹1 lakh — representing a 24% hike.
The salary hike is based on the Cost Inflation Index (CII) under the Income Tax Act, 1961, making it systematic and inflation-linked.
The hike was notified on March 24, 2025, but applied retrospectively from April 1, 2023.
The revised pension for former MPs is ₹31,000/month (increased from ₹25,000), with ₹2,500 additional for each year beyond 5 years of service.
The last salary revision for MPs was in April 2018, making the 2025 hike the first in 6 years.
