On March 24, 2025. The Central Government has declared a raise of 24% in the salary and pension of Members of Parliament (MPs).
This announcement has caused an enormous debate across the country. On one side, supporters praised it. While on the other hand, critics questioned the timing and reasoning of the announcement.
Salary and Pension Revision
The government has approved a 24% increase in the monthly salary of MPs, bringing it from ₹1,00,000 to ₹1,24,000.
Likewise, the pension for former MPs will rise by 24%, ensuring retirement benefits in alignment with the economic situation of the time.
The basis of the adjustment reflects inflation and rising costs of living, together acknowledging a financial burden associated with public service.
Government Justification
Officials of the government stated the salary and pension revision justify the dignity and safety of MPs.
According to the government, this allows them to fulfill their duty appropriately. The government noted that this salary increase is comparable to periodic adjustments for government officials and public servants.
Political Reaction
The announcement has brought mixed reactions from diverse parties. Proponents believe MPs should be compensated fairly. Meanwhile, agreeing the rise is justified given the economic state.
They argue adequate pay is necessary to attract people to office, and to maintain them in service.
On the other hand, opposition members are skeptical of when it will come into effect. Particularly, when many people are struggling to make ends meet.
They state that publicly elected representatives should show solidarity with their constituents by refusing to take a pay increase.
Some opposition leaders have also called the action too cold-hearted. They were saying that the money could be better spent on social programs.
Salary Increase for MPs Versus Other Government Employees
The pay increase for MPs has also sparked questions of disparities between representatives and other public employees.
MPs are now provided with a 24% increase in pay. However, many other government employees received significantly lower amounts.
This has again sparked calls for a more institutional approach to salary increases for other public employees.
Salary Increase and Economic Potential
Economists have also expressed opinions about the economic potential of the salary and pension increases.
Some believe it is inconsequential in consideration with the national budget. Also, the government’s expenditures.
Others, however, have pointed out that increases in salary and pensions may be an incentive to other organizations. Including sectors to capitalize on the same increase.
In this regard, it may add more strain on public accounts to cover the increase that appears to be the new norm.
Historical Context
This is not the first time MPs’ salaries and pensions have been changed. Historically, these changes can happen on a regular basis for inflation and other contextual economic reasons.
However, when MPs are granted an increase in their compensation it generally becomes the topic of much debate.
Henceforth, this speaks to the sensitive nature of paying public officials.The government’s choice to revise MPs’ salaries to a 24% increase has sparked a debate.
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