President Ram Nath Kovind approves Ordinance on salary cut for MPs, effective from 1st April 2020

New Delhi: President Ram Nath Kovind on Tuesday (April 7) night approved the Ordinance amending the Salary, Allowances & Pension of MP Act, 1954 reducing allowances and pension by 30 percent w.e.f. 1st April 2020 for a year. Each MP will also now forfeit Rs 27,000 per month from out of Constituency Allowance and Office Allowance, according to a government statement.

Joint Committee of Parliament in consultation with the government recommends 30 percent cut in Constituency Allowance of Rs 70,000 pm which comes to Rs 21,000. Now it will be 49000 per month, it said, adding "Out of Rs 60,000 of Office Allowance per month, each MP will now get Rs 14,000 towards stationery as against Rs 20,000 earlier." 

Meanwhile, there is no cut in the amount of Rs 40,000 pm meant for engaging PAs. 

Rajya Sabha Chairman Venkaiah Naidu and Lok Sabha Speaker Om Birla accepted the recommendations of the Joint Committee and the cut becomes effective from April 1.

Pralhad Joshi, Parliamentary Affairs Minister, welcomed the government's decision and said, "I welcome Gazette notifications issued from Lok Sabha and Rajya Sabha Secretariats regarding 30% reduction in constituency allowance and stationary allowance for MPs and 30% reduction in constituency allowance for ministers."

Earlier on Monday, the Union Cabinet had approved an ordinance amending the Salary, Allowances, and Pension of Members of Parliament Act, 1954 to reduce allowances and pension by 30 per cent with effect from April 1, for a year.

The President, Vice President, and Governors also voluntarily decided to take a pay cut as a social responsibility. The money will go to the Consolidated Fund of India. 

The government took this decision in light of the coronavirus pandemic which India along with other countries is battling.

The Union Cabinet also approved the move to suspend the Members of Parliament Local Area Development Scheme (MPLADS) for two years (2020-21 and 2021-22). The amount will go to the Consolidated Fund of India.

The purse strings of the government have been tightened in view of the coronavirus emergency. Notably, PM CARES fund has been set up for the relief efforts.