Centre notifies 24% hike in salary, allowances and pension of MPs from 1 April 2023
The Centre notified on 24 March 2025 a 24% increase in the salary, daily allowance and pension of sitting and former MPs, with retrospective effect from 1 April 2023.
Summary
The Ministry of Parliamentary Affairs notified on 24 March 2025 a 24% increase in the salary, daily allowance, pension and additional pension of Members and former Members of Parliament, with effect from 1 April 2023. An MP's monthly salary rises from ₹1 lakh to ₹1.24 lakh and the daily allowance from ₹2,000 to ₹2,500. The pension for former MPs rises from ₹25,000 to ₹31,000 a month, and the additional pension for each year of service beyond five years from ₹2,000 to ₹2,500 a month. The revision was made under the Salary, Allowances and Pension of Members of Parliament Act, 1954, on the basis of the Cost Inflation Index in the Income-tax Act, 1961. The previous revision was in April 2018.
Key facts
- Notified
- 24 March 2025, Ministry of Parliamentary Affairs
- Effective
- 1 April 2023 (retrospective)
- Salary
- ₹1 lakh → ₹1.24 lakh a month
- Daily allowance
- ₹2,000 → ₹2,500
- Former MPs' pension
- ₹25,000 → ₹31,000 a month
- Basis
- Cost Inflation Index; Salary, Allowances and Pension of MPs Act, 1954
Practice MCQs 4 questions
What is the revised monthly salary of a Member of Parliament under the notification of 24 March 2025?
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Correct answer: A — ₹1.24 lakh
An MP's monthly salary was raised from ₹1 lakh to ₹1.24 lakh, a 24% increase, with effect from 1 April 2023.
From which date does the hike in MPs' salary and pension, notified on 24 March 2025, take effect?
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Correct answer: A — 1 April 2023
The revision was notified with retrospective effect from 1 April 2023.
Under the March 2025 revision, the monthly pension of former MPs was raised from ₹25,000 to:
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Correct answer: B — ₹31,000
The pension for former MPs rose from ₹25,000 to ₹31,000 a month; additional pension per year beyond five years rose from ₹2,000 to ₹2,500.
Consider the following statements about the revision of MPs' salaries notified on 24 March 2025: 1. It was made under the Salary, Allowances and Pension of Members of Parliament Act, 1954. 2. The increase was linked to the Consumer Price Index for Industrial Workers. Which of the above is/are correct?
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Correct answer: A — 1 only
The revision was notified under the Salary, Allowances and Pension of Members of Parliament Act, 1954, on the basis of the Cost Inflation Index specified in the Income-tax Act, 1961, not the CPI for Industrial Workers.