Salary And Allowance Of Members Of Parliament

Salary And Allowance of Members of Parliament

Introduction

The Lok Sabha recently approved the Salary Allowances and Pension of Members of Parliament (Amendment) Bill 2020. The Union Cabinet's ordinance, which had the identical effect, will be replaced by the Bill. The measure aims to lower MP compensation in response to financial management of the COVID-19 pandemic. 
 

The Provisions Relating To MPs' Salaries

•    The Constitution's article 106 gives members of parliament the authority to set their own salary and benefits through legislation.
 
•    Some nations, including Australia and the UK, need independent authority to fix the payment of MPs since it creates a conflict of interest.
 
•    In India, MPs' allowances are different from those in other nations. Indian lawmakers receive houses but not offices like Americans do. Additionally, compared to other nations, India has very low employment allowances for legislative assistants.
 
•    The central government was given the authority to establish and modify specific MP allowances, such as the constituency allowance, office allowance, housing allowance, etc., by a law passed by Parliament in 1985.
 
•    Prior to this, The Finance Act of 2018 stipulated that the pay, daily allowance, and pension of MPs shall be regularly increased after every five years, depending on the cost inflation index stipulated under the Income Tax Act of 1961.
 
•    The present decrease in MP contributions will barely affect the amount of money needed to fight the COVID-19 outbreak. When compared to the 20 lakh crore programme announced for this pandemic, the overall savings will only be Rs 54 crore, which is a relatively small amount. 
 

Major Elements of The Bill

Salary And Allowance of Members of Parliament
•    The pay, Allowances and Pension of Members of Parliament Act, 1954, which specifies an MP's pay and several allowances, is amended by this bill.
 
•    The basic pay for MPs is decreased by 30% under the Bill.
 
•    Additionally, the government reduced various perks for MPs, such as the constituency allowance and the office expense allowance, by amending specific Rules under the 1954 Act.
 
•    These modifications are in effect starting on April 1, 2020, for a year.
 
•    The sumptuary allowance for Ministers is decreased by 30% under the Bill, which changes the Salaries and Allowances of Ministers Act of 1952.
 

Disputations Regarding The MP Salary Issue

•    The method used to determine MP salary is debatable. Currently, MPs have the authority to set their own salaries through legislation, which raises ethical issues.
 
•    Many claimed that it interferes with the impartiality concept, which is necessary for fair evaluation.
 
•    There is a need for an impartial body to rule on payment-related issues. A statute requiring periodic reviews of the payment difficulties was just recently passed by the Parliament. 
 

Conclusion

MP salaries are a topic of discussion and contention. Despite the fact that the most recent change significantly cut MP salaries, many still view it as a symbolic move. The Longstang way to end the argument will be to have an impartial authority. Fair solutions should also be found for problems like the low allowance for secretarial support.

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