Union Cabinet gives nod to hike in MPs' allowances

Members of Parliament are set to get increased allowances with the Union Cabinet today approving a proposal in this regard.

The constituency allowance, furniture allowance and communication expenses of the MPs would go up considerably, sources in the government said. The parliamentary affairs ministry had proposed an increase in the constituency allowance from Rs 45,000 a month to Rs 60,000. The ministry had also proposed that the one-time furniture allowance be hiked to Rs one lakh from the present Rs 75,000.

Finance Minister Arun Jaitley had announced in his budget speech that a permanent mechanism would be set up to revise the salaries of MPs every five years, and it would be linked to inflation.The remuneration of an MP includes a basic salary of Rs 50,000 per month and Rs 45,000 as constituency allowance, apart from other perks. 

The Centre spends around Rs 2.7 lakh a month on an MP. As of today, excluding the Speaker, the Lok Sabha has 536 MPs, including two nominated from the Anglo-Indian community. There are eight vacancies.The Rajya Sabha has 239 members.