The recent hike in MPs' salaries to Rs 1.24 lakh a month stems from a 2016 proposal by PM Narendra Modi. He suggested a formal mechanism for salary adjustments, which was implemented in the Finance Act of 2018. This act links salary revisions to t...
Following the recent notification of a 24% hike in MPs’ salaries to Rs 1.24 lakh per month, ET’s Jatin Takkar explores the mechanism that governs these salary adjustments, as proposed by PM Narendra Modi in 2016.
Components of MPs’ and Ministers’ Income
How are MPs’ Salaries Revised?
In 2016, Prime Minister Narendra Modi suggested the establishment of a formal mechanism to revise MPs’ salaries, moving away from arbitrary decisions in Parliament. Following this, the Finance Act of 2018 amended the Salaries, Allowances, and Pension of Members of Parliament Act, 1954, linking salary revisions to the Cost Inflation Index (CII).
