The Central Government has announced a revision in the salary, allowances, and pension for Members and Ex-Members of Parliament, effective from April 1, 2023.
New Delhi: The Ministry of Parliamentary Affairs has officially issued a notification announcing an increase in the salary, daily allowance, pension, and additional pension for Members and Ex-Members of Parliament. This new revision will be effective starting from 1st April 2023.
The notification was issued by the Central Government under the powers given by sub-section (2) of section 3 and sub-section (1A) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954). As per the government, these revised rates are based on the Cost Inflation Index as mentioned in clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961).
The official notification clearly states:
“G.S.R. 188(E).— In exercise of the powers conferred by sub-section (2) of section 3 and sub-section (1A) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954), the Central Government hereby notifies the increase in the salary, daily allowance, pension and additional pension of Members and Ex-Members of Parliament on the basis of Cost Inflation Index specified under clause (v) of the Explanation to section 48 of the Income-tax Act, 1961(43 of 1961), with effect from the 1st April, 2023, as under :-“
As per the new rates, here is the comparison of existing and revised amounts:
- Monthly Salary: Increased from ₹1,00,000 (w.e.f. 1.4.2018) to ₹1,24,000 (w.e.f. 1.4.2023)
- Daily Allowance: Increased from ₹2,000 to ₹2,500
- Monthly Pension: Increased from ₹25,000 to ₹31,000
- Additional Pension for Service Over Five Years: Increased from ₹2,000 per mensem to ₹2,500 per mensem
These new financial benefits apply to both current MPs and former MPs who are receiving pensions.
The notification was signed by Dr. SATYA PRAKASH, Addl. Secy. and registered under file number F.No. 4/3/2022-ME.
This move comes as a response to inflation and aims to adjust the monetary compensation for parliamentarians in line with the rising cost of living. With this notification, the government ensures that the public representatives are fairly compensated for their service and responsibilities in the legislature.
Legal Perspective on Hike in Salary, Allowances & Pension of MPs
The recent notification by the Ministry of Parliamentary Affairs, dated 21st March 2025, for the hike in the salary, daily allowance, and pension of Members of Parliament (MPs) and Ex-MPs, is not just a policy update—it is rooted in legal and constitutional provisions. Here’s a legal breakdown:
The Central Government has exercised its authority under specific provisions of the Salary, Allowances and Pension of Members of Parliament Act, 1954—a central law enacted under the powers granted by the Constitution of India.
Statutory Authority
The hike is done using powers under:
- Section 3(2): Allows the Central Government to determine MPs’ salaries.
- Section 8A(1A): Gives the Government power to revise allowances and pensions based on Cost Inflation Index, ensuring fair compensation amidst inflation.
This provides a legal basis for the revision through a notification, which is a legitimate subordinate legislation (a rule or regulation made under an Act).
The notification reads:
“G.S.R. 188(E).— In exercise of the powers conferred by sub-section (2) of section 3 and sub-section (1A) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954)…”
This means the notification is backed by law and is enforceable as such.
Constitutional Validity
The Parliament has the power under Article 106 of the Constitution of India to decide salaries and allowances of its members. However, since Parliament cannot regularly make laws for every update, it passed the 1954 Act, delegating this power to the executive (Central Government) to notify changes via rules.
Hence, this delegation of power is constitutionally valid and not excessive, especially since it is tied to measurable benchmarks like the Cost Inflation Index (used under the Income-tax Act, 1961).
Rule of Law & Justification
The hike follows the Cost Inflation Index under clause (v) of the Explanation to section 48 of the Income-tax Act, 1961, ensuring a rational and transparent mechanism for revision.
The notification specifically mentions:
“…on the basis of Cost Inflation Index specified under clause (v) of the Explanation to section 48 of the Income-tax Act, 1961(43 of 1961), with effect from the 1st April, 2023…”
This ensures the change is not arbitrary but based on a financial index used consistently in taxation laws to adjust values over time.
Administrative Law Compliance
The use of a GSR (General Statutory Rules) Notification—G.S.R. 188(E)—is in line with administrative law principles. It ensures public communication, transparency, and legal enforceability of the revised rates.
The notification also bears the file number and signature of the authorized officer—Dr. SATYA PRAKASH, Addl. Secy., making it a valid and authentic government document.
FOR MORE LEGAL UPDATES FOLLOW US ON YOUTUBE
