By The Sampadak Express
On Monday, the Centre announced a 24% hike in the monthly salaries of Members of Parliament (MPs), increasing it from Rs 1 lakh to Rs 1.24 lakh per month, marking the first salary revision in seven years. In addition to the salary increase, MPs will also see a rise in their daily allowance and pensions.
The daily allowance for MPs attending Parliament sessions has been raised from Rs 2,000 to Rs 2,500, while the pension for former MPs has been increased from Rs 25,000 to Rs 31,000 per month. Additionally, the pension for every year of service beyond five years has been hiked from Rs 2,000 to Rs 2,500 per month.
The revision is based on the Cost Inflation Index, a mechanism introduced by the Income Tax Department. This move follows the 2018 amendment to the Salary, Allowances and Pension of Members of Parliament Act, 1954, which linked salary increases to the Cost Inflation Index, with revisions set every five years.
A Historical Look at MPs’ Salaries
When the salaries of MPs were first set in 1954, they earned Rs 300 per month, along with a daily allowance of Rs 20 while Parliament was in session. Over the decades, the salary has been revised several times:
1966: Salary raised to Rs 500 (67% increase).
1983: Salary increased to Rs 750 (50% rise), and the daily allowance to Rs 75.
1985: Another hike to Rs 1,000 per month (33% increase), with 16 free flights per year and other allowances.
1998: The biggest increase till then, a 167% hike to Rs 4,000 a month.
2001: A further rise to Rs 12,000 (200% increase).
2010: The largest hike at 213%, taking the salary to Rs 50,000 per month.
2018: The salary doubled to Rs 1 lakh per month, based on the Cost Inflation Index.
Salary Comparison with Per Capita Income
From 1954 to 2025, MPs’ salaries have increased over 400 times. In comparison, the per capita monthly income (adjusted for inflation) has grown only eight times, from Rs 1,131 in 1953-54 to Rs 9,363 in 2024-25. Currently, an MP’s salary is over 13 times the national per capita monthly income.
MPs’ Assets Surge with Salary Increases
The increase in salaries comes at a time when the average assets owned by an MP have grown significantly. In 2020, MPs had an average of Rs 20.93 crore in assets, which increased to Rs 40.34 crore in 2025.
MPs’ Salaries Compared with MLAs
Despite the salary increase, MPs still earn less than MLAs in several states. For example, MLAs in Jharkhand earn Rs 2.88 lakh a month, while those in Maharashtra, Manipur, and Telangana earn Rs 2.5 lakh. In contrast, MLAs in Kerala earn the lowest at Rs 70,000 per month.
Following the salary hike for MPs, Delhi’s MLAs are now pushing for their own pay raise, with a five-member committee formed to examine their demands.
The recent salary hike for MPs reflects the ongoing adjustments to their compensation in line with inflation. While their salaries have risen significantly over the years, they remain a subject of discussion as state-level legislatures continue to compare their pay with that of Parliamentarians.
