Cabinet approves for reducing 30% Salary, Allowances and Pension of Members of Parliament w.e.f. 1st April, 2020 for a year

Cabinet approves for reducing 30% Salary, Allowances and Pension of Members of Parliament w.e.f. 1st April, 2020 for a year

In an unprecedented move, the Central Government on Monday decided to slash salaries of Members of Parliament and Union Cabinet Ministers by 30% for one year amid the novel Coronavirus hit to the country. Union Minister Prakash Javadekar informed that the Union Cabinet has approved an Ordinance amending the salary, allowances and pension of Members of Parliament Act, 1954 reducing allowances and pension by 30% w.e.f. April 1 for a year.

"The President, Vice President, Governors of States have voluntarily decided to take a pay cut as a social responsibility. The money will go to the Consolidated Fund of India," Prakash Javadekar said.

Javadekar said that an amendment in this regard will be tabled in Parliament once the House is back in session, but the Ordinance, which temporarily allows the law to take effect for six months, kicks into effect the change. The Prime Minister, being a member of the Cabinet and Parliament, will also have a pay cut.

Preamble

[Act No. 30 of 1954]

STATEMENT OF OBJECTS AND REASONSI

“Under article 106 of the Constitution Members of Parliament are entitled to receive such salaries and allowances as may from time to time be determined by Parliament by law and, until provision in that respect is so made. allowances at such rates and upon such conditions as were immediately before the commencement of the Constitution applicable in the case of Members of the Constituent Assembly.

Parliament has not enacted any law so far with the result that Members have continued to receive allowances at rates which applied to the Members of the Constituent Assembly despite certain changes which have since occurred in the classification of accommodation on railways. This Bill seeks to establish the basis on which salary and allowances should be drawn by Members of Parliament.”-Gaz. of Ind., 1954,dt. 8-5-1954, Pt. II, section 2. Extra., p. 287.