The salary of public Representative like MP and MLA should not be hike indiscriminately

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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. The committee’s proposal are accepted, and the total compensation package for an MP 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.


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 lifelong pension, insurance, sarkari vehicle etc 

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.

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

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 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 salary of MPs of India with rest of world

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 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 state. Our article Salary of MLA in India discusses salary of MLA in different states in detail.

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)
Salary of Chief Ministers in India

Name of CM              State           Monthly Salary    Annual Salary
Nitish Kumar               Bihar               1,00,000           12,00,000
Amrinder Singh         Punjab              1,00,000           12,00,000
Tarun Gogoi               Assam                 90,000          10,80,000    Mehbooba Mufti   Jammu & Kashmir    90,000          10,80,000
Devendra Fadnavis  Maharashtra         75,000             9,00,000         Shivraj Singh     Madhya Pradesh  1,10,000          13,20,000
Vasundhara Raje       Rajasthan            25,000             3,00,000
Manohar Parrikar         Goa                   20,000             2,40,000
Mamata Banerjee  West Bengal           8,000                96,000
Virbhadra Singh   Himachal Pradesh      65000            7,80,000

Salary and Perks of Prime Minister of India
President of India and Rashtrapati Bhavan shows that Pranab Mukherjee will draw a salary of Rs.1.5 lakh a month