What’s New in MP Salary Structure (2025 Update)
In March 2025, the Indian government approved a 24% salary hike for MPs (Members of Parliament), effective retrospectively from April 2023. The basic monthly salary has increased from ₹1,00,000 to ₹1,24,000.
But that’s just the beginning. When you factor in tax-free allowances and government perks, the total monthly value MPs enjoy is far beyond their basic salary.
Revised Salary of MPs in 2025
| Component | Old (₹/month) | New (₹/month) |
|---|---|---|
| Basic Salary | 1,00,000 | 1,24,000 |
| Constituency Allowance | 70,000 | 70,000 (Tax-Free) |
| Office Expense Reimbursement | 60,000 | 60,000 (Tax-Free) |
| Daily Allowance | 2,000/day | 2,500/day (Avg ₹50,000/month, Tax-Free) |
Total Monthly Value (Including Allowances): ₹3,04,000
Annual Cash Value: ₹36.5 lakh (excluding perks)
️ Additional Perks Enjoyed by MPs
MPs also enjoy a wide range of non-taxable or heavily subsidized benefits, including:
- Free accommodation in Delhi (bungalow/flat)
- Unlimited air and train travel for official duties (includes spouse)
- Free electricity, water, and telephone
- Medical facilities under CGHS
- Pension for life after 5 years of service
- Subsidized meals in Parliament
- Office setup and device reimbursements
Estimated Total Annual Value (Salary + Perks): ₹45–₹50 lakh+
How Much Tax Do MPs Actually Pay?
Here’s where it gets interesting. While the gross salary appears high, most of it is non-taxable. Let’s compare this with a private-sector employee earning a similar monthly package:
Tax Comparison: MP vs Salaried Employee (₹3 Lakh/month)
| Category | MP (2025) | Private Employee (2025) |
|---|---|---|
| Monthly Gross Salary | ₹3,04,000 | ₹3,00,000 |
| Tax-Exempt Income | ₹1,80,000+ | ₹0–50,000 |
| Taxable Salary | ₹1,24,000 | ₹2,50,000+ |
| Monthly Tax Payable (approx.) | ₹18,000 | ₹60,000–75,000 |
| Effective Tax Rate | ~6% | 20–25% |
How MPs’ Salary Compares to the Average Indian
| Profession | Avg Monthly Salary |
|---|---|
| Entry-Level IT Engineer | ₹25,000 – ₹35,000 |
| Government Clerk | ₹20,000 – ₹40,000 |
| Chartered Accountant (Fresher) | ₹60,000 – ₹1,00,000 |
| MP (2025 Total Package) | ₹3,00,000+ |
Even the pension of a former MP (₹31,000/month) is higher than the salary of lakhs of full-time government or private sector workers.
Why MPs Have Lower Tax Liabilities
MPs’ allowances are structured under Section 10(14) of the Income Tax Act, which treats many of their reimbursements as tax-exempt. Unlike private employees who receive taxable bonuses, LTA, and HRA (with caps), MPs’ earnings are optimized for low tax outgo and high take-home pay.
Summary: Key Takeaways
- MPs earn ₹3 lakh+ per month, with most components tax-free
- 24% hike in March 2025 brought their basic salary to ₹1.24 lakh/month
- Effective tax rate is ~6%, compared to 20–25% for high-earning private employees
- Total annual value of package crosses ₹50 lakh, making it one of the most lucrative public service roles in the country
FAQs on MP Salary and Taxation
1. Do MPs pay income tax on their salary?
Yes, but only on the taxable portion. Most of their allowances like constituency and office expenses are fully exempt.
2. Is the daily allowance taxable?
No, the daily allowance of ₹2,500 for attending Parliament sessions is non-taxable.
3. Do MPs receive a pension after retirement?
Yes, former MPs receive ₹31,000/month as pension, plus ₹2,500 for every additional year served beyond 5 years.
4. How often are MP salaries revised?
MP salaries are now linked to the Cost Inflation Index and revised automatically every 5 years.
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