Budget 2018: How MPs are set to get 100% salary hike 2 months before rule on automatic revision comes into effect

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New Delhi | Updated: February 2, 2018 8:00:04 PM

According to the Finance Bill tabled in the Lok Sabha after the budget presentation, the basic salary of MPs has been revised from Rs 50,000 to Rs 1,00,000 per month, while pension has been revised from Rs 20,000 per month to Rs 25,000 per month.

budget 2018, finance bill, arun jaitley, member of parliament, mp salary hike, lok sabha, rajya sabhaIn Budget 2018, FM Arun Jaitley announced that salaries of MPs would be automatically revised indexed to inflation every five years.

Members of Parliament have been given a 100 percent hike in salary in Budget 2018, two months before the new rule providing for automatic revision of parliamentarians’ salaries every five years comes into effect. Presenting the Union Budget in Parliament on Thursday, Finance minister Arun Jaitley announced changes to the existing mechanism whereby MPs arrogated salary hikes to themselves, inviting much criticism for parliamentarians.

According to the Finance Bill, 2018 tabled in the Lok Sabha after the Budget 2018 presentation, the basic salary of MPs has been revised from Rs 50,000 to Rs 1,00,000 per month, while pension has been revised from Rs 20,000 per month to Rs 25,000 per month. The changes have been brought about through amendments to the Salary, Allowances and Pension of Members of Parliament Act, 1954. The salary hike for MPs, which had been a long-standing demand of parliamentarians, will be rolled out with effect from April 1, 2018, as per the Finance Bill. The next revision of their salary will be carried out after five years, i.e., in 2023.

Here is the relevant portion of the Finance Bill 2018:

MPs salary hike, Members of parliament, Finance Bill 2018, Budget 2018, Finance Minister, Arun Jaitley, Narendra ModiThe Finance Bill 2018 proposes an increase in basic salary of MPs from Rs 50,000 to Rs 1,00,000 effective April 1, 2018.

The Finance Bill, which has been introduced in the Lok Sabha where it will need to be approved. Being a money bill, the Finance bill will then go to the Rajya Sabha which can make recommendations. As per the provisions of Article 109 of the Constitution, the Rajya Sabha has limited powers with regard to draft legislation tagged by the government as Money bills. The Lok Sabha is free to either accept or reject all or any of its recommendations. The Bill then goes to the President for approval.

The Union Budget for the year 2018-19 also revises the salaries of the President, Vice President and Governors to Rs 5 lakh, Rs 4 lakh and Rs 3.5 lakh, respectively. Their previous salaries were Rs 1.5 lakh for the President, Rs 1.25 lakh for the Vice president and Rs 1.1 lakh for Governors.

In his budget speech, Jaitley proposed changes to refix the salary, constituency allowance, office expenses and meeting allowance payable to Members of Parliament with effect from April 1, 2018. “I am sure the honourable members will welcome this initiative and will not suffer such criticism in future,” he said.

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