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NEWS IMPULSE – THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT (Amendment) BILL, 2020 | 17 SEPTEMBER

/ September, UPSC Daily Current Affairs

Source- PRS INDIA

GS PAPER -2

CONTEXT – The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2020 was passed by the Lok Sabha. The bill seeks to cut salaries of MPs by 30%.

KEY PROVISIONS

  • This Bill replaces the Salary, Allowances and Pension of Members of Parliament (Amendment) Ordinance, 2020.
  • This Ordinance amends the Salary, Allowances, and Pension of Members of Parliament Act, 1954.
  •   The Act lays out the salary and various allowances that an MP is entitled to during their term in Parliament and also provides for the pension to former MPs.
  • The Ordinance reduces the basic salary of MPs by 30%.
  •   Further, the government also amended certain Rules under the 1954 Act to reduce certain allowances of MPs.  
  •  These amendments have been made for a period of one year effective from April 1, 2020
  • The Act provides for the payment of a monthly sumptuary allowance (for expenditure incurred in entertaining visitors) at different rates to the Prime Minister, Cabinet Ministers, Ministers of State, and Deputy Ministers
  • The President and Vice-President of India along with all the State Governors, have also decided to cut their salary by 30%.
  • The amendment would only cut MPs’ salaries but not the allowances or the pensions of ex-MPs.