Lok Sabha on Tuesday passed a bill to reduce for one year the salaries of MPs by 30 per cent “to meet the exigencies arising out of COVID-19 pandemic”. The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2020 was introduced in the Lower House on Monday.
It will replace the Salary, Allowances And Pension of Members of Parliament (Amendment) Ordinance, 2020. The ordinance was cleared by the Cabinet on April 6 and promulgated the next day.
The two Ordinances amend: (i) the Salary, Allowances, and Pension of Members of Parliament Act, 1954 to reduce the salaries of MPs by 30%, and (ii) the Salaries and Allowances of Ministers Act, 1952, to reduce the sumptuary allowance of Ministers by 30%.
The government also amended Rules notified under the 1954 Act to reduce certain allowances of MPs for one year. These include constituency allowance and office expenses allowance.
These changes have been made for a period of one year effective from April 1, 2020.
These reductions are being made to supplement the financial resources of the centre to tackle the COVID-19 pandemic.