Home Know The Law Salary, Allowances and Pension of Members of Parliament Amendment Ordinance 2020

Salary, Allowances and Pension of Members of Parliament Amendment Ordinance 2020

The Salary, Allowances, and Pension of Members of Parliament [Amendment] ordinance, 2020 was promulgated on April 7, 2020. It amended the Salary, Allowances, and Pension of members of parliament Act, 1954.

The key feature of the MLAs and the MLCs

Gujarat, Himachal Pradesh, Karnataka, Kerala, and Uttar Pradesh promulgated Ordinances, to reduce the basic salary and certain allowances of MLAs and MLCs by 30%. The Bihar government amended the Rules that provide for their salaries and allowances, to reduce their salary by 15%.

These amendments have been made for a period of one year and were effective from April 1, 2020.

Table 1 compares the previous and current entitlements of MLAs and MLCs across these states.

Table 1: Five states have cut salaries and allowances of legislators by 30%; Bihar by 15%

         Feature

Previous Entitlement

   [In Rs per month]

New entitlement

  [in Rs per month]

Bihar

Basic salary

40,000

34,000

Gujrat

Basic salary

78,000

55,160

Himachal Pradesh

Basic salary

Constituency salary

55,000

90,000

38,500

63,000

Karnataka

1,40,000

98,000

Kerala

Basic salary

Constituency salary

Telephone allowance

Information allowance

Sumptuary allowance

2,000

25,000

11,000

4,000

8,000

1,400

17,500

7,700

2,800

5,600

Uttar Pradesh

Basic Salary

Constituency allowance

Secretanal allowance

25,000

50,000

20,000

17,500

35,000

14,000

Note: Above is the PRS citation of the ordinance passed.

Purpose of the Bill

The above act entitles a Reduction in salaries of members of parliament [MP]. An MP will receive a salary of Rs 1,00,000 per month during his term. The ordinance reduces the salary of MPs by 30% for a period of 1 year. This is to raise resources to meet the urgent needs arising out of the COVID 19 pandemic. The reduction was applied from April 2020.

The reason why the reduction of salary was necessary?

The reason for this amendment clearly says it all. The unfortunate crisis needed multiple ways and a large sum of money to make the situation come in hand. Since all the business and economic activities came to a standstill, the focus of the resources needed to be changed to curb the situation.

  • Funds were raised from all the government employees may it be teachers or MPs
  • Urgent isolated wards were made.
  • Sanitization kits were distributed.
  • The free ration was distributed.
  • Special quarantine centers were made in every state and every possible nearby place.

Conclusion :

This act was very much needed since the economy of the nation came to a standstill but, the country needed resources to keep up with the pandemic. Because of reduction in salaries for the 1-year the government will have more funds to execute in various ways to help people and hospitals.

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