A parliamentary committee recommended raising the basic salary of Members of Parliament (MPs) and substantially increasing allowances and pensions. The committee proposed raising the base salary from ₹50,000 to ₹100,000 per month and increasing the constituency allowance from ₹45,000 to ₹90,000, which would roughly double the guaranteed monthly compensation package for an MP if accepted. The committee also recommended a 75% rise in pensions and an automatic periodic revision of pay.

Key historical points

MPs’ pay and benefits are governed by The Salary, Allowances and Pension of Members of Parliament Act, 1954 and subsequent rules and amendments.
In August 2010, MPs approved a major revision that raised the basic salary from ₹16,000 to ₹50,000 and increased constituency and office allowances; that change produced an assured monthly income of roughly ₹1.3 lakh when allowances were included.

The document notes longstanding complaints that MP pay is sometimes compared unfavourably or inconsistently with that of state MLAs and senior bureaucrats; debates about pegging MP pay to senior civil service pay have recurred.

“After election to LokSabha, the members become entitled to salaries, allowances, travelling facilities, medical facilities, accommodation, telephones, etc.”

“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.”
 
Cleaned, concise list of current components of MP compensation (as described in the document)
Basic salary (historical baseline): ₹50,000 per month (post‑2010 figure).
Daily allowance for attending Parliament sessions.
Constituency allowance for constituency expenses.
Office expenses allowance for staff, stationery and postage.
Perquisites: government accommodation (furnished and maintained), travel entitlements (rail, air tickets), telephone lines and call allowances, subsidised utilities, and medical cover under government schemes.
Pension: a monthly pension with increases for longer service; pension rules were introduced in 1977 and have been revised over time.
 
Suggested practical reforms to reduce the income gap and make MP compensation fairer and more transparent

1. Establish an independent remuneration body

Create a statutory, independent Remuneration Review Body (modelled on the UK Review Body) to recommend MP pay and pensions, removing the ability of MPs to directly set their own pay.
Link periodic revisions to a transparent index (for example, a weighted combination of CPI and public sector pay awards) rather than ad hoc increases.

2. Increase transparency and accountability

Publish a single, itemised annual “Cost to the Public” statement for each MP showing salary, allowances, perks, travel, security and pension liabilities.
Require real-time public disclosure of outside income, business interests, and committee assignments to reduce conflicts of interest.

3. Rationalise perks and target benefits

Convert many in‑kind perks (e.g., free utilities, multiple phone lines) into standardised allowances with clear caps and audit trails.
Limit lifetime pension accruals for short tenures; make pension eligibility and amounts progressive (higher for long service, modest for short service).

4. Strengthen anti‑conflict rules

Ban MPs from holding executive positions in private companies that directly benefit from the parliamentary committees they serve on; require recusal when conflicts arise.

5. Use fiscal savings to fund pro‑poor measures

Any net fiscal savings from rationalising MP pay/perks should be ring‑fenced for poverty‑reduction programs: targeted cash transfers, health and education spending in low‑income districts, and expansion of employment guarantee schemes.

6. Broader fiscal and social-policy measures to bridge income inequality

Progressive taxation: strengthen enforcement and consider modest increases in top marginal rates while closing loopholes.
Universal basic services: invest in free or subsidised primary healthcare, public schooling, and affordable public transport.
Strengthen social safety nets: expand targeted direct benefit transfers and ensure timely delivery using DBT and Aadhaar‑linked systems.
Boost livelihoods: scale up skill training, credit and market access for micro, small and medium enterprises (MSMEs), and strengthen rural employment guarantees (e.g., MGNREGA).

Land and labour reforms that increase productivity and protect the rights of informal workers.
 
Priority, actionable roadmap (short list)
Pass a law creating an independent Remuneration Review Body within 6–12 months.
Mandate full disclosure of MP CTC and outside income within the next parliamentary session.
Cap and audit non‑salary perks and convert them to transparent allowances within 12 months.
Allocate savings from rationalisation to a visible anti‑poverty fund and publish annual impact reports.
Simultaneously pursue progressive tax enforcement and targeted social investments over the next budget cycle.
 
Implementing the reforms above would make MP compensation more transparent, less self‑serving, and better aligned with the public interest, while directing fiscal gains toward programs that reduce inequality and raise living standards for the poorest.