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“In the forthcoming 60 months, the country won’t get a labourer like me,” said Narendra Modi after BJP won the Lok Sabha elections by landslide margin on 16th 2014. “I have always said the government doesn’t belong to a party but to the country. A government doesn’t belong to any group but works for all 125 crore people (of the country)….Improving everyone’s lives is the government’s priority,” he said.  So how much does the Prime Minister of India, Members of Parliament earn? What about the salary and perks of State Assemblies? This article tries to answer these questions.

Overview of Salaries of President, Prime Minister, MP in India

Salary of Chief Ministers in India

Salary of Chief Ministers in India

Salary of Indian Prime Minister, President, MP,MLA etc

Salary of Indian Prime Minister, President, MP

Salary of President of India

Salary and Perks of President of India are given below. Our article President of India, Salary, Perks and Rashtrapati Bhavan covers it in detail.

  • A president draws a salary of Rs.5 lakh a month. (In Jan 2016 the salary of the President was increased from the current 1.5 lakh a month to 5 lakh a month)
  • The President lives in Rashtrapati Bhavan–the largest presidential palace in the world. The palace covers 5 acres, has an area of 19,000 square metres and is part of a 330-acre estate in the heart of the national capital.
  • He has a secretarial staff of five people and another 200 people employed for the upkeep of Rashtrapati Bhavan.
  • The President has two equally lavish holiday retreats. One is the Rashtrapati Nilayam in Hyderabad and the other is the Retreat Building in Shimla.
  • The President travels with a cavalcade of 25 cars. The vehicle of choice for President Pranab Mukherjee was an extended and armoured Mercedes-Benz S600. Apart from that, he is accompanied by the President’s presidential bodyguard. It includes 86 presidential guards mounted on magnificent horses.
  • The President and the spouse can travel to anyplace in the world free of cost.
  • The President is allotted a maintenance budget of up to Rs 30 crore for the upkeep of his palace.
  • He is also allotted a personal budget by the government to handle all the expenses of the President done in his official capacity, which includes mostly every piece of business, visits, hosting events, guests, state leaders etc. The daily expenses of the President are also covered in this budget.
  • Official website of President of India is http://presidentofindia.nic.in/

Salary and Perks of Prime Minister of India

The Prime Minister of India earns  ₹160000 (US$2,500) monthly. The break up is given below.

Salary/Pay Prime Minister of India

Salary/Pay Prime Minister of India

PM of India Travel

From Times of India 17 th May 2014

pm-on-move

How does PM of India travel

Post retirement benefits of PM of India

From Times of India 17 th May 2014 Post retirement benefits of PM of India are given below

Benefits of PM post retirement

Benefits of PM post retirement

What MP Earn, MP Salary

The salary of MPs are covered in the act THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT ACT, 1954 AND RULES MADE THEREUNDER is available at website mpa.nic.in and salary and amenities at http://loksabha.nic.in/

An MP , since Aug 2010, is paid a base salary of  Rs 50,000 per month and is entitled to a pension of 20,000 per month. If an MP serves as a member for a period exceeding five years, this pension increases by 1,500 for each additional year of service. In addition, MPs are compensated for official expenses through various allowances :

  • Daily allowance of 2,000 for each day of attending Parliament. Parliament has three sessions every year. The Budget Session (February to May), Monsoon session (July to September), and Winter session (November and December).
  • Constituency allowance for expenses incurred in the constituency of 45,000 per month and
  • Office expenses of Rs 45,000  for staff (limit of 30,000), stationery and postage(15,000)  per month

An MP’s wage is tax-free and comes with additional  perquisites such as free petrol, free telephone calls and free housing. Most household  expenses , furniture, electricity, water, laundry , is also paid for . MPs can travel anywhere in the country by rail, first class, and get 34  free air tickets for themselves or a companion a year. Spouses of MPs can  travel free by air from their residence to New Delhi eight times a year when Parliament  is in session and unlimited number of times by rail.

  • Each MP gets near-free electricity of 50,000 units every year. And free water.
  • The MP’s bungalow is furnished — with air conditioners, refrigerators and television sets — free of cost. Maintenance of the house — including washing of sofa covers and curtains — is done free of cost by the government.
  • MPs are entitled to three phone lines and 170,000 free local calls every year.
  • When an MP travels abroad officially, he is entitled to free business class air tickets. He is also paid a daily travelling allowance, which varies depending upon the country being visited.
  • Most medical expenses of MPs are taken care of by the Contributory Health Service Scheme of the Union government.

So if you try to add all the perks etc conservative CTC (Cost to the Country) of an MP is close to Rs.35 Lakhs ($70k), excluding the cost of maintaining security guards, the cost of life long pension, insurance, sarkari vehicle etc as shown by Nitin Jain in his blog post How much our MP’s’ earn, REVEALED !! . Our article Salary, Net Salary, Gross Salary, Cost to Company: What is the difference covers CTC, Base Salary for an employee.

Cost to Country of a MP

Cost to Country of a MP

Demand of Rajya Sabha Members for Increase in Salary

Rajya Sabha members in Aug 2016 once again raised the demand for increasing their salaries and questioned the government`s silence on the suggestions of a committee that has recommended salary hike for the members of parliament.

“MPs` salary is lowest of all. Our salary is lesser than MLAs of Delhi government, half of what a Maharashtra MLA gets, and a third of that of Telangana MLAs,” Samajwadi Party leader Ramgopal Yadav said. “We are asked to reduce expenditure. Should we turn people away? We are spending from our own pockets. I fail to understand… we were directly or indirectly told there will be some announcement by the last day of session,” he said.

Increase our salary and make it more than Cabinet Secretary’s,” Yadav added. The salary of the Cabinet Secretary is Rs 2,50,000 a month as recommended by the 7th Pay Commission.

A joint committee of the Lok Sabha and Rajya Sabha has prepared a report recommending MPs` salary to be hiked from the present Rs 50,000 to Rs 1 lakh, constituency allowance from Rs 45,000 to Rs 90,000 and secretarial assistance plus office allowance from Rs 45,000 to Rs 90,000. The recommendations have not been made public. The panel, headed by BJP leader Yogi Adityanath, also recommended around 75% raise in pensions and an automatic mechanism for salary hike for MPs.

Congress leader Anand Sharma supported the Samajwadi Party leader. “The government is quiet on the recommendations. Either we accept that we are not people`s representatives, we need to be capitalist, feudal lords, or businessmen. If we are people`s representatives, there should not be this hypocrisy that the salary of MPs is not raised but other people get hike,” he said.

How salary of MP has changed over period of time

The act was written in 22nd May 1954 and came into effect on 1st June 1954. Till today it has been amended 28 times by Acts Nos.

  • 9 of 1955, 55 of 1958, 26 of 1964, 25 of 1969, 29 of 1972, 65 of  1974, 48 of 1975, 105 of 1976, 33 of 1977, 27 of 1979,
  • 21 of 1981, 35 of 1982, 61 of 1982, 22 of 1983, 74 of 1985, 60 of 1988, 30 of 1989, 3 of 1993, 48 of 1993, 18 of 1995,
  • 28 of  1998, 16 of 1999, 17 of 2000, 46 of 2001, 34 of 2002,9 of 2004, 40 of 2006 and 37 of 2010

Some of the changes over the years have been as follows:

  • In 1968 MP’s salary was Rs 400 + Rs  31 Daily Allowance
  • From 1969 to 1985 salary was Rs 500 + Rs 51 Daily Allowance
  • Pension for MPs  was introduced in 1977
  • In 1985 salary was Rs 1500
  • Since 2010 it is Rs 1,40,000

On August 27, 2010, Indian Members of Parliament voted themselves a threefold hike in their basic salary, from Rs 16,000 to Rs 50,000 and doubled the constituency and office expense allowances to 40,000 each. MPs will thus receive an assured income of Rs 1.3 lakh (a salary of Rs 50,000 plus constituency allowance of Rs 40,000 and office or stationary allowance of Rs 40,000) a month. According to one calculation, after the hikes of the MPs’ salaries, perks and allowances, they will earn 68 times more than what an average person earns annually.

Salary of MP increased from 2010

Salary of MP increased from 2010

It is interesting to note that Indian MPs are paid lower than many Government bureaucrats, even though they outrank them in the order of precedence. During the debate in Parliament, several MPs recommended that their salaries be pegged at one rupee more than the salary of the Secretary to the Government of India. This would also result in automatic revision with each Pay Commission award. Two former chief ministers and leaders of their respective parties, Mulayam Singh Yadav and Lalu Prasad Yadav,  demanded a 500% hike in salaries for MPs and stalled proceedings in Parliament during the debate on the salary increase in 2010. They wanted the basic salary to be fixed at Rs 80,001, one rupee more than the salary of a secretary in the  Government of India. However, while most MPs run businesses from where they derive income, for bureaucrats, their salaries are usually their sole source of income. Moreover, while a bureaucrat gets a pension after serving for 30-35  years, an MP is entitled to pension even if he has spent just one day in  Parliament. Nor do bureaucrats get a daily allowance for attending office every day as MPs do for attending Parliament. Comparison of salaries of MPs with Government bureaucrats from PRSIndia document of 2010 How much India pays its legislators (pdf)

Montlhy base salary of Govt. officials in India

Monthly base salary of Govt. officials in India

Finance Minister Arun Jaitley during Budget 2018 proposed changes to refix emoluments to Parliamentarians with effect from April 1, 2018. The proposed law will provide automatic revision of emoluments every five years indexed to inflation.

Emoluments for the President, Vice-President and Governors were also revised to ₹5 lakh, ₹4lakh and ₹3.5 lakh per month respectively. In 1951, India’s first President’s salary was ten times the salary of lawmakers and ministers. But over the year, this difference has narrowed down

There has been a considerable public debate with regard to emoluments paid to Members of Parliament. The present practice allows the recipients to fix their own emoluments which invite criticism. I am, therefore, proposing necessary changes to refix the salary, constituency allowance, other expenses payable to Members of Parliament with effect from April 1, 2018,” Mr Jaitley said. Mr Jaitley did not specify the extent of the hike that lawmakers – members of the Lok Sabha and Rajya Sabha – would get. But changing the law to index their salaries to the price index is a huge concession. Lawmakers have been demanding for years that an independent body should be set up, quite like the pay commission for bureaucrats, which gives them a hike.

A parliamentary committee has suggested that the salary of MPs be raised from Rs. 50,000 to a lakh a month and a constituency allowance from Rs. 45,000 to 90,000. If the committee’s proposals are accepted, the total compensation package for an MP will go up from Rs.1,40,000 to 2,80,000. The committee, headed by the BJP’s Yogi Adityanath has also recommended a 75percentt rise in pensions, and an automatic revision in salaries periodically. MPs’ salaries were last hiked six years ago. The Congress’ Ghulam Nabi Azad, Leader of Opposition in the Rajya Sabha, said, ” Inflation affects everyone, MPs are also hit.”

“MPs’ salary is lowest of all. Our salary is lesser than MLAs of Delhi government, half of what a Maharashtra MLA gets, and a third of that of Telangana MLAs,” Samajwadi Party leader Ramgopal Yadav said.  “Increase our salary and make it more than Cabinet Secretary’s,” Yadav added. Rajya Sabha members on 12 Aug once again raised the demand for increasing their salaries and questioned the government’s silence on the suggestions of a committee that has recommended salary hike for the members of parliament.

After election to LokSabha, the members become entitled to salaries, allowances, travelling facilities, medical facilities, accommodation, telephones, etc . These amenities are provided to members with a view to enable them to function effectively as Members of Parliament.  These are governed by the Salary, Allowances and Pension of Members of Parliament Act, 1954 and the rules/amendment of it.

Salary of MPs in comparison with Rest of World

An outdated but to give you an idea of how salary of MP’s compare with rest of world from PRSIndia document of 2010 How much India pays its legislators (pdf) is as follows

Salaries of National Legislators across countries, when adjusted for the relative cost of living, provide a useful metric for comparison. The adjustment is done using the Purchasing Power Parity (PPP) which takes into account the relative prices of products in each country. On PPP-adjusted terms, Indian MPs earn about 25% of their counterparts in the US. In fact, most advanced democracies pay their national legislators an amount significantly higher than India. Parliaments in these advanced democracies also providea higher level of support to their legislators. For instance, the allowances accorded for hiring support staff. Whereas an Indian MP gets an allowance of `28,000 per month (as part of office expenses) for hiring assistants, his counterpart, the US Congressman gets $70,000 per month and can hire up to 18 permanent employees.

Comparison of salary of MPs of India with rest of world

Comparison of salary of MPs of India with rest of world

But the way it differentiates from rest of World is that in India MPs decide their own salary.
In France and Japan,  salaries of MPs are determined in relation to the salaries of the highest paid bureaucrats.
In Germany,  Article 48 (3) of the Basic Law says that the members of Bundestag will get remuneration adequate enough to ensure their independence.
In Switzerland, parliamentarians do not get any salary or allowance. They just get paid leave from their employers on the days of a session.
In Mexico,  MPs are paid handsomely, but they cannot do any business or practise any profession. They cannot even be office bearers of any political party.
In the USA, members of  Congress cannot earn more than 15% from outside of their Congressional salary.  There is no such bar on the MPs or MLAs in India.An MP who has a defence equipment business is allowed to be on a defence committee which formulates defence policy and a parliamentarian who has aviation interests to be on a civil aviation committee, thereby making policy changes which benefit them individually.
In the UK,  the Review Body on Senior Salaries established by law, advises the prime minister on the pay and pensions of MPs, ministers, judges, defence personnel,  senior civil officers and other such high posts. It is an independent body consisting of non-MPs who have served in high positions in the judicial and managerial offices with distinction.

Salary of MLA

Salaries of MLA are decided by the states. There is wide variation in MLA salaries across state assemblies.  A Delhi MLA earns a salary of Rs.12000 per month with other allowances, While an MLA in Maharashtra earns Rs.75000 and MLAs of  Karnataka earn approx Rs 95 000 per month.  Other than salary, MLAs also get similar facilities like MPs – daily allowance, constituency allowance, office expenses allowance, provisions for accommodation, travel etc. As is the case with salaries, these too vary across the state. Our article Salary of MLA in India discusses salary of MLA in different states in detail.  Example of  Salary of Delhi MLA is given below. The tables below shows the salary of MLA of different states  Ref: ExamUpdates.

State Wise MLA Salary in India 2017-18

State name Total No. of MLA’s MLA Salary Per Month
Andhra Pradesh (AP) 175  Rs. 1,25,000
Arunachal Pradesh 60  Rs. 25,000
Assam 126  Rs. 60,000
Bihar 243  Rs. 1,65,000
Chhattisgarh 90  Rs. 1,35,000
Delhi 70  Rs. 2,10,000
Goa 40  Rs. 1,00,000
Gujarat 182  Rs. 127,000
Haryana 90  Rs. 1,15,000
Himachal Pradesh 68  Rs. 1,25,000
Jammu & Kashmir 87   Rs. 1,60,000 
Jharkhand 81  Rs. 1,51,000
Karnataka 224  Rs. 63,500
Kerala 140  Rs. 43,750
Madhya Pradesh (MP) 230  Rs. 2,10,000
Maharashtra 288  Rs. 1,60,000
Manipur 60  Rs. 1,12,500
Meghalaya 60  Rs. 27,750
Mizoram 40  Rs. 65,000
Nagaland 60  Rs. 35,000
Odisha 147  Rs. 35,000
Punjab 117  Rs. 1,10,000
Rajasthan 200  Rs. 55,000
Sikkim 32  Rs. 52,000
Tamil Nadu 234  Rs. 1,13,000
Telangana (TS) 119  Rs. 2,50,000
Tripura 60  Rs. 25,890
Uttar Pradesh (UP) 403  Rs. 1,87,000
Uttarakhand 70  Rs. 35,000
West Bengal 294  Rs. 96,000
Puducherry 30  Rs.1,05,000

Salary of Delhi MLA

Salary of Delhi MLA’s  from their webpage MLA Salaries & Allowances Of Ministers//Speaker/Dy. Speaker/Leader Of Opposition/Chief Whip

 1.

Salary Rs. 12,000/- per mensem

2.

Constituency Allowance Rs. 18,000/- per mensem

3.

Secretarial Allowance Rs. 10,000/- per month

4.

Conveyance Allowance Rs. 6,000/- per month

5.

Telephone Facilities Rs. 8,000/- per month to meet the cost of telephone call charges

6.

Daily Allowance Rs. 1,000/- per day (subject to a maximum up to 40 days per year) for attending Assembly session/committee meetings etc.

7.

Conveyance Advance Upto Rs. 4,00,000/- (repayable within his office term)

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It was not a wave, but a TsuNaMo, they said, as the country unanimously decided to vote a Narendra Modi led government into power at the Centre. Sir or Bhai (as they say in Gujrati) we have done our job, ball is your court now.  We are hoping you don’t us down.

We have presented to you the facts regarding salary of Members of Parliament, MLAs,Prime Minister.  While efforts have been made to provide correct information, apologies upfront for any mistakes. Please let us know and we will correct. So what do you feel about the Salaries, Pay,Perks,Allowances of Prime Minsiter of India, Members of Parliament , Member of Legislative Assembly (MLA).  Interested in serving the country? Do you think the MPs,MLAs are paid less or more? Do you think  kya humare Ache din aa gaye hain ?

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