The Union Cabinet on Wednesday approved to hike monthly allowances of Members of Parliament (MPs) by 55 per cent. The decision to hike salary of MPs by Rs 40,000 was taken in a Cabinet meeting chaired by Prime Minister Narendra Modi.
The Union Cabinet approved the amendment to allowance rule effective from April 1. The 55 per cent hike on allowances will have additional financial implication of more than Rs 39 crore on account of recurring and Rs 6.64 crore on non-recurring expenditures.
The Parliamentary Affair Ministry said, “The MPs will be now paid Rs 70,000 per month as constituency allowance and Rs 60,000 for office expenses.”
MPs are being currently given Rs 45,000 as constituency allowance and Rs Rs 45,000 for office expenses.
The Ministry also informed that furniture allowance given in five years has been increased from Rs 75,000 to Rs one lakh.
According to the ministry, the approval will be conveyed to Joint Committee on Salaries and Allowances of Members of Parliament for making amendments in the relevant rules and it will be approved by and confirmed by the Chairman and the Speaker.
“After being approved it will be published in the Official Gazette,” added Ministry.
The Finance Minister Arun Jaitley during the budget had announced that basic pay of the parliamentarians is also set to be doubled to Rs one lakh from April 1.