Union Cabinet Approves Ordinance To Reduce Salary Of MPs By 30% For One Year; MPLADS Suspended For 2 Years

The Union Cabinet has approved an Ordinance to reduce the salary of Members of Parliament by 30% in view of the economic slump caused by the COVID-19 lockdown.

The reduction will take effect from April 1, 2020, and will remain in force for a year.

The salaries and allowances of Prime Minister and Union Ministers will also be reduced by 30% for one year.

The salary and allowances to MPs are determined under The Salary, Allowances & Pension of Members of Parliament Act 1954, which has been amended from time to time. The proposed Ordinance will amend this Act.

The announcement in this regard was made by Prakash Javadkar, Union Minister for Information and Broadcasting. 

The President, Vice President, Governors of States have also voluntarily decided to take a pay cut as a social responsibility .

The Cabinet also decided to cancel allocation of Members of Parliament Local Area Development Scheme funds.

 MPLADS will be suspended for two years.

The money so raised through reductions will go to Consolidated Fund of India.