Tuesday, 25 March 2025
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MP Salary Hike: Centre Announces 24% Increase in Pay and Pension

  • MPs’ monthly salary increased from ₹1,00,000 to ₹1,24,000; pension raised to ₹31,000.
  • Karnataka government approves a 100% salary hike for CM, ministers, and MLAs.
  • The hike is retrospectively implemented from April 1, 2023, linked to the Cost Inflation Index.

The central government has revised the salaries and pensions of MPs, increasing their monthly pay by 24% and raising additional pensions for every year of service beyond five years.

This move comes amid Karnataka’s decision to double the salaries of its CM, ministers, and MLAs. The timing of these hikes, during economic challenges and budget discussions, raises questions about public expenditure priorities and the financial burden on taxpayers.

Parliament Approves Pay Raise for MPs Amid Budget Discussions

The Centre’s decision to increase MPs’ salaries and allowances has reignited debates on government spending and fiscal responsibility. While the revision follows inflation trends, the retrospective implementation from April 2023 ensures that MPs receive substantial arrears. Critics argue that similar adjustments should be prioritized for public sector employees and essential services.

The last MP salary hike was in 2018 when a proposal for automatic revisions linked to inflation was introduced. However, the government has taken a discretionary approach instead. The increase in allowances further enhances the overall remuneration, including constituency and office expenses, bringing the total monthly package to ₹2,54,000 per MP.

Karnataka’s 100% salary hike for its CM, ministers, and MLAs has intensified discussions on fair compensation in politics. Some argue that public representatives should be adequately paid to deter corruption, while others believe such increases should be merit-based and performance-linked.

As India grapples with inflation and budget deficits, the timing of these pay raises is likely to spark political debates. With general elections approaching, public perception of such hikes could influence voter sentiment. The government may need to justify these increases with tangible governance improvements.

While salary hikes for public representatives are often justified by inflation and workload, their timing and scale remain contentious. Balancing fair compensation with public expectations will be key in managing political and economic narratives.

“Public service must be more than doing a job efficiently and honestly. It must be a complete dedication to the people and the nation.” – Margaret Chase Smith

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