Before the EID festival, central government takes a huge decision. The central government has announced a new notification about raising the salaries, daily allowances, and pensions for Members of Parliament (MPs). As per the update from the Ministry of Parliamentary Affairs, this new pay structure will take effect starting April 1, 2023. The adjustments were made in response to inflation, leading to changes in the salary and pension provisions under the Members’ Salary, Allowances and Pension Act of 1954.

 

Monthly Salary of MPs

 

Previously, MPs received a monthly salary of Rs 1,00,000, which has now been raised to Rs 1,24,000. The daily allowance has also seen an increase from Rs 2,000 to Rs 2,500. Additionally, the monthly pension for former MPs has been bumped up from Rs 25,000 to Rs 31,000. For those who served more than five years, the extra pension has been revised from Rs 2,000 to Rs 2,500 per month.

 

Inflation Over the Last 5 Years

 

The government’s decision to raise salaries takes inflation into account, which will significantly benefit MPs. Officials state that this salary hike is a response to the rising inflation observed over the past five years. The adjustments are based on the inflation rate and cost index set by the Reserve Bank of India (RBI), and both current and former MPs will benefit from these changes.

 

When Will the DA Increase Be Announced?

 

Government employees have also been eagerly awaiting a hike in their Dearness Allowance (DA). Following the MPs’ salary increase, there are expectations that the government might soon extend similar benefits to government employees. Media reports suggest that the government could approve this in the upcoming cabinet meeting scheduled for next week.

 

Once approved, the DA increase is expected to be implemented from January 2025, and employees may receive arrears for January, February, and March when they get their April salary.