Union Cabinet Approves 30% Salary Reduction for MPs

Union Government approved an ordinance slashing the salaries, pension, and allowances of MPs (Members of Parliament). The slashing will be by 30% for one year. The salary and allowances of MPs come under The Salary, Allowances & Pension of Members of Parliament Act 1954. The proposed ordinance will amend the act. The ordinance is also an amendment to Members of Parliament Act, 1954. The amendment will take effect from April 1, 2020.

The Union Information & Broadcasting Minister, Prakash Javadekar said, “Apart from the ordinance on MP (Member of Parliament) salary, President Ram Nath Kovind, Vice-President Venkaiah Naidu and many state governors and lieutenant-governors have also voluntarily decided to take a pay cut as a social responsibility”. Thus, only the MPs will get a mandatory 30% cut by the implementation of the amendment

When asked about the total amount to be saved through this cut, Javadekar said: “Amount may not be big, but important thing is that it will reflect the sentiment and will of MPs”. The Cabinet also decided to suspend Member of Parliament Local Area Development Scheme (MPLADS) for two years, 2020-21 and 2021-22. This decision will enable the release of ₹7,900 crores. The money will go to the Consolidated Fund of India and will be used in the fight against COVID-19.