PENSION FOR MPS: Compared to developing countries, Indian MPs have unparalled freedom to fix their own salaries and perks. In France and Japan, salaries of MPs are determined in relation to the salaries of the highest paid bureaucrats. In Germany, Article 48 (3) of the Basic Law says that the members of Bundestag will get remuneration adequate enough to ensure their independence. In Switzerland, parliamentarians do not get any salary or allowance. They just get paid leave from their employers on the days of session. There is also the question of proportion - comparing the salary of MPs with the people they claim to represent. According to one calculation, after the hikes of the MPs’ salaries, perks and allowances, they will earn 68 times more than what an average person earns annually. Former MPs, whose pensions were last revised in 2009, may now see a hefty hike in their retirement benefits. Government sources told HT that the monthly pension for ex-MPs is likely to go up to Rs. 35,000 a month from Rs. 20,000 a month — a 75% hike. A major breakthrough in pensions for ex-MPs came under the first NDA government, led by Atal Bihari Vajpayee when they introduced pension for all MPs irrespective of their tenure. Earlier, only MPs who had completed a 5-year term were entitled to post-retirement benefits. The Modi government is also set to increase the rate of additional pension for each completed year in excess of five years. The centre is considering additional pension of Rs. 2,000 per month instead of the current rate of Rs. 1,500. In other words, if a parliamentarian has served for seven years, he or she will get monthly four thousand additional pension on the top of his basic pension of Rs. 35,000. Sitting MPs, who have received routine hikes to keep up with inflation, currently get a salary of `50,000 per month. The additional perks and allowances include Rs. 45,000 per month as constituency allowance, Rs. 2,000 daily if he attends parliament and Rs. 30,000 for secretarial assistance, among other things. An MP , since Aug 2010, is paid a base salary of Rs 50,000 per month and is entitled to a pension of 20,000 per month. If an MP serves as a member for a period exceeding five years, this pension increases by 1,500 for each additional year of service. In addition, MPs are compensated for official expenses through various allowances : • Daily allowance of 2,000 for each day of attending Parliament. Parliament has three sessions every year. The Budget Session (February to May), Monsoon session (July to September), and Winter session (November and December). • Constituency allowance for expenses incurred in the constituency of 45,000 per month and • Office expenses of Rs 45,000 for staff (limit of 30,000), stationery and postage(15,000) per month An MP’s wage is tax-free and comes with additional perquisites such as free petrol, free telephone calls and free housing. Most household expenses , furniture, electricity, water, laundry , is also paid for . MPs can travel anywhere in the country by rail, first class, and get 34 free air tickets for themselves or a companion a year. Spouses of MPs can travel free by air from their residence to New Delhi eight times a year when Parliament is in session and unlimited number of times by rail. • Each MP gets near-free electricity of 50,000 units every year. And free water. • The MP’s bungalow is furnished — with air conditioners, refrigerators and television sets — free of cost. Maintenance of the house — including washing of sofa covers and curtains — is done free of cost by the government. • MPs are entitled to three phone lines and 170,000 free local calls every year. • When an MP travels abroad officially, he is entitled to free business class air tickets. He is also paid a daily travelling allowance, which varies depending upon the country being visited. • Most medical expenses of MPs are taken care of by the Contributory Health Service Scheme of the Union government. So if you try to add all the perks etc conservative CTC (Cost to the Country) of an MP is close to Rs.35 Lakhs ($70k), excluding the cost of maintaining security guards, the cost of life long pension, insurance, sarkari vehicle etc.
Posted on: Sun, 30 Nov 2014 10:22:59 +0000
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