“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 do 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.
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 proposal 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 75 per cent 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.
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 amenties 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.
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.
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)
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 provide 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.
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|
|Himachal Pradesh||68||Rs. 1,25,000|
|Jammu & Kashmir||87||Rs. 1,60,000|
|Madhya Pradesh (MP)||230||Rs. 2,10,000|
|Tamil Nadu||234||Rs. 1,13,000|
|Telangana (TS)||119||Rs. 2,50,000|
|Uttar Pradesh (UP)||403||Rs. 1,87,000|
|West Bengal||294||Rs. 96,000|
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
|Salary||Rs. 12,000/- per mensem|
|Constituency Allowance||Rs. 18,000/- per mensem|
|Secretarial Allowance||Rs. 10,000/- per month|
|Conveyance Allowance||Rs. 6,000/- per month|
|Telephone Facilities||Rs. 8,000/- per month to meet the cost of telephone call charges|
|Daily Allowance||Rs. 1,000/- per day (subject to a maximum up to 40 days per year) for attending Assembly session/committee meetings etc.|
|Conveyance Advance||Upto Rs. 4,00,000/- (repayable within his office term)|
Salary of Chief Ministers in India
Paycheck India, led by Indian Institute of Management-Ahmedabad faculty member Biju Varkkey, has compiled interesting data on the salaries of India’s ruling elite, including the PM, President and chief ministers (around 2013). According to their data, ignoring Rs 1 annual salary by Tamil Naidu Chief Minister Jayalalithaa,West Bengal Chief Minister Mamata Banerjee is the poorest CM earning Rs 96,000 per year while Punjab’s Parkash Singh Badal, with a salary of Rs 12 lakh per annum, is the richest.
|Name of CM||State||Monthly Salary||Annual Salary|
|Parkash Singh Badal||Punjab||1,00,000||12,00,000|
|Omar Abdullah||Jammu and Kashmir||70,000||8,40,000|
|Shivraj Singh Chouhan||Madhya Pradesh||50,000||6,00,000|
|Mamata Banerjee||West Bengal||8,000||96,000|
|J Jayalalithaa||Tamil Nadu||1|
Salary and Perks of Prime Minister of India
How does PM of India Travel
From Times of India 17 th May 2014
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
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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 ?