The salaries, allowances, and pensions of MPs increased by the government

Current Context: The government has announced a 24% increase in the salaries, allowances, and pensions for Members of Parliament (MPs), effective April 1, 2023.

• This decision was formally notified on March 24, 2025, and aims to account for inflation and align with the Cost Inflation Index under the Income Tax Act.
• Daily Allowance: Raised from ₹2,000 to ₹2,500 per day for attending Parliament sessions and committee meetings.
• Pension Increase: Monthly pension for former MPs increased from ₹25,000 to ₹31,000.
• Additional Pension: For each year of service beyond five years, the additional pension rose from ₹2,000 to ₹2,500 per month.
• Constituency Allowance: Increased from ₹70,000 to ₹87,000 per month.
• Office Expenses: Revised from ₹60,000 to ₹75,000 per month.
• Basis of Adjustment: The hike is linked to the Cost Inflation Index under the Income-tax Act, 1961, as per a system established in 2018 for automatic revisions every five years.

Question:

Q.1 As per the recent government notification, what is the revised daily allowance for Members of Parliament (MPs) for attending Parliament sessions and committee meetings?
a) ₹2,500 per day
b) ₹2,000 per day
c) ₹3,000 per day
d) ₹3,500 per day

Answer: a): The daily allowance for MPs has been increased from ₹2,000 to ₹2,500 per day, effective April 1, 2023. This revision is part of the overall salary and pension adjustments to account for inflation.