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Govt: MPs' pay hike in line with policy on inflation adjustment

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 New Delhi: A day after it notified a 24% salary hike for members of parliament, the Indian government defended the move as a structured adjustment rather than a discretionary decision.

In a statement on Tuesday the government said the revision, effective 1 April 2023, was based on a mechanism introduced in 2018 that linked MPs' salaries to inflation with the aim of preventing arbitrary increases.

The Ministry of Parliamentary Affairs notification, issued on 24 March, raised MPs’ monthly salaries from ₹1 lakh to ₹1.24 lakh. The government's statement emphasised that the revision was aligned with the cost inflation index (CII) under the Income Tax Act, ensuring automatic salary adjustments every five years.

Also read: India’s US trade deal at risk without fast-track authority: GTRI

The system was introduced after Prime Minister Narendra Modi opposed MPs deciding their own pay in 2016 and suggested linking it to structured criteria, similar to pay commissions, the statement noted.

Before the 2018 amendment, MPs’ salary revisions were ad hoc and required parliamentary approval, often triggering public backlash. The last major hike before this was in 2010, when salaries were tripled from ₹16,000 to ₹50,000, leading to criticism that MPs were granting themselves an excessive raise.

Related video: India's MPs Get A Big Salary Hike; Allowances, Pensions Also Bumped Up | Details (Live Mint)
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India's MPs Get A Big Salary Hike; Allowances, Pensions Also Bumped Up | Details
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