On July 2, 2015, a parliamentary panel had recommended a hike in the salaries of MPs by almost 100 percent. The panel recommended around 75 percent raise in pensions for former MPs and an automatic mechanism for salary hike for MPs.

In 2010, a bill was passed by the Lok Sabha to hike salaries of MPs by over three times from Rs.16,000 to Rs.50,000 per month. At that time the daily allowance paid to MPs when they attend parliament was hiked to Rs.2,000 from Rs.1,000, constituency allowance was increased to Rs.45,000 per month from Rs.20,000 and office expenses (for staff, stationery and postage) was also raised to Rs.45,000 per month from Rs.20,000. Other benefits included 50,000 free calls from an allotted landline phone, 50,000 units of free electricity and 4,000 kilo-litres of free water.

The Rs.2,000 daily allowance during sessions has now been recommended to be doubled to Rs. 4,000.

The panel has also suggested that the health benefits the lawmakers avail of via the Central Government Health Scheme should be extended to their children and grandchildren as well. Some MPs submitted to the panel that while they were given a first class ticket to travel by train, their companions, even if it was the spouse, could travel only second class. The panel has advocated first class tickets for companions and also suggested first class train tickets for ex-MPs and their spouses.

The recommendations of a parliamentary panel are, however, not mandatory for the government to act upon. 

On July 3, 2015, a day after the parliamentary panel pitched for almost a 100% salary hike for Members of Parliament, the parliamentary affairs ministry had reportedly scrapped more than 70% of the recommendations made by the panel for both sitting and former MPs. The few that are under consideration include the proposal to double the pay hike from the present Rs 50,000 per month, enhancement of constituency allowance from Rs 45,000 to Rs 80,000 and increasing the salary of personal staff from Rs 30,000 to Rs 50,000 per month besides increasing the pension from Rs 20,000 to Rs 35,000. 

Recommendations Rejected: 

* Cabin/ office for MPs in parliament * Diplomatic passport for ex-MPs * CGHS facilities for dependents of ex-MPs * Car facility for committee chairpersons during session * Enhancement of road mileage * Security to chairpersons when they go out of Delhi * 10 air tickets to ex-MPs * Enhancement of air tickets from 34 to 48 for sitting MPs * Provision of housing loan * Provision for setting up of housing society * Official vehicle for MPs * Enhancement of daily allowance from Rs 2,000 to Rs 5,000 * Facilities of departmental canteen for grocery items 

Under Consideration: 

* Increasing pay to Rs 1 lakh from Rs 50,000 * Hiking pension amount from Rs 20,000 to Rs 35,000 * Enhancement of constituency allowance from Rs 45,000 to Rs 80,000 * Increasing salary of personal staff from Rs 30,000 to Rs 50,000 * Enhancement of car loan from Rs 4 lakh to Rs 10 lakh * Provision of budget for Adarsh Gram: Referred to Niti Aayog * Increasing MP quote in Central schools from 10 to 15: Referred to HRD ministry

It is reported that the committee will meet on 16 July again to decide on an Action Taken Report (ATR)

Existing Pay and perks
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. 

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

Source: http://www.bemoneyaware.com/blog/pay-and-perks-of-indian-mp-mla-and-prime-minister?wpmp_tp=1 (image) 

The above mentioned statistics are the current salary and benefits of the MPs. It is easy to comprehend the huge rise that would come up in the salary and benefits of the parliamentarians. The existing numbers are itself quite alarming. We need to remind ourselves, that we are the ones who are paying their salary, it is from our earnings, the common man’s taxes, that they are enjoying on.

 
When more than 40% of people live at Rs. 28/- per day, how can 'servants of the people' have 3300/- per day salary (approx)? ( http://timesofindia.indiatimes.com/india/Govt-rejects-70-proposals-of-Parl-panel-on-MPs-salary-hike/articleshow/47932773.cms) Politicians say they want to serve the people. Is this the price of their service? The list of perks that MPs already have (subsidized lavish cuisine, air travel, assistant, etc.) is amazing. The list of perks they still want is outright annoying. People elect MPs to enact laws that are meant to help the people. While MPs pass laws that are meant to help the MPs themselves. What kind of a democracy do we have? 

Our sincere and humble request is that the salaries and allowances of MPs should be fixed by a pay commission, not themselves and future increases should be linked to the price index. The proposals should be scrutinised by the CAG. Just like Govt. Employees, Salaries of MPs should be linked with Price index and their salaries should be recommended by an independent Commission. Also, there should be a performance appraisal mechanism set up for each of the MPs.

It is against the very cardinal principles of financial propriety that anybody should sanction from public fund for himself. A majority of these MPs are crorepatis. They are more than able to meet the expenditure. Government is asking LPG consumers to forego subsidy. Why such plethora of perquisite not given up? We need to stop this hike from happening. This is a country run by the people, for the people, the common man. We hereby submit this petition, in interest of equity and the common good of all.