{"id":17513,"date":"2020-10-08T11:57:32","date_gmt":"2020-10-08T06:27:32","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17513"},"modified":"2024-07-02T18:36:40","modified_gmt":"2024-07-02T13:06:40","slug":"salaries-and-allowances-of-ministers-amendment-bill-2020-reduction-of-salary-upto-30","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/salaries-and-allowances-of-ministers-amendment-bill-2020-reduction-of-salary-upto-30\/","title":{"rendered":"Salaries and Allowances of Ministers (Amendment) Bill, 2020: Reduction of Salary Upto 30%"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Salaries and Allowances of Ministers (Amendment) Bill, 2020 has been passed by the Rajya Sabha on 18\/09\/2020 and Lok Sabha on Sep 20, 2020. The Bill regulates the salaries and allowance of the active minister including the PM. The Bill supersedes the<em>&nbsp;<\/em>Salaries and Allowances of Ministers (Amendment) Ordinance, 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Highlights of Salaries and Allowances of Ministers (Amendment) Bill, 2020<\/h2>\n\n\n\n<p><strong><em>The Bill reduces:-<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The salaries of Member of Parliament by thirty percent.<\/li>\n\n\n\n<li>Sumptuary allowances of active minster by thirty percent.<\/li>\n\n\n\n<li>Office expenses allowance and constituency allowance were notified under the 1954 Act.&nbsp;<\/li>\n\n\n\n<li>These amendments have been made effective from 1\/04\/2020 and are supposed to serve one year from the aforesaid date.<\/li>\n\n\n\n<li>These changes are being made in the purview of the <a href=\"https:\/\/corpbiz.io\/learning\/covid-19-outbreak-sebi-relaxes-compliance-requirements-for-companies\/\"><strong>COVID 19 pandemic<\/strong><\/a> to render financial support to the center.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/latest-highlights-on-the-industrial-relations-code-bill-2020\/\">Latest Highlights on the Industrial Relations Code Bill, 2020<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Limitation Associated with the Bill<\/h3>\n\n\n\n<ul>\n<li>The constitution allows the Members of Parliament to decide their salaries as well as allowances bypassing the law. This results in a conflict of interest.<\/li>\n\n\n\n<li>The proposed reduction is less likely to make any sort of impact on the     financial resources requires to combat COVID-19.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The given table depicts the changes made to the salaries and allowances of Ministers and MP against the previous entitlements.  <\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Feature<\/strong><strong><\/strong>\n  <\/td><td>\n  <strong>Previous\n  entitlement&nbsp;<\/strong><strong><\/strong>\n  <strong>(monthly\n  basis)<\/strong><strong><\/strong>\n  <\/td><td>\n  <strong>New\n  entitlement as per Bill<\/strong><strong><\/strong>\n  <strong>(monthly\n  basis)<\/strong><strong><\/strong>\n  <\/td><\/tr><tr><td>\n  Salary\n  <\/td><td>\n  &nbsp;1,00,000\n  <\/td><td>\n  70,000\n  <\/td><\/tr><tr><td>\n  Allowance (Constituency)\n  <\/td><td>\n  70,000\n  <\/td><td>\n  49,000\n  <\/td><\/tr><tr><td>\n  Allowance (Office expense)\n  <\/td><td>\n  60,000\n  <\/td><td>\n  54,000\n  <\/td><\/tr><tr><td>\n  <em>1. Office expenses<\/em>\n  <\/td><td>\n  <em>20,000<\/em>\n  <\/td><td>\n  <em>14,000<\/em>\n  <\/td><\/tr><tr><td>\n  &nbsp;2.\n  <em>Secretarial assistance<\/em>\n  <\/td><td>\n  <em>40,000<\/em>\n  <\/td><td>\n  <em>40,000<\/em>\n  <\/td><\/tr><tr><td>\n  Sumptuary allowance of PM\n  <\/td><td>\n  3,000\n  <\/td><td>\n  2,100\n  <\/td><\/tr><tr><td>\n  Sumptuary allowance of Cabinet Ministers\n  <\/td><td>\n  2,000\n  <\/td><td>\n  1,400\n  <\/td><\/tr><tr><td>\n  Sumptuary allowance of Ministers of State\n  <\/td><td>\n  1,000\n  <\/td><td>\n  700\n  <\/td><\/tr><tr><td>\n  Sumptuary allowance of Deputy Ministers\n  <\/td><td>\n  600\n  <\/td><td>\n  420\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\">Historical Context of the Legal Status <\/h2>\n\n\n\n<p>Article 106 confers the right to the MPs to\ndecide their emoluments bypassing the law. Till the year 2018, Members of\nparliaments passed laws for the revision of their salaries periodically. This\ngradually created conflicts amongst other members who were against such a\nprovision. In 2010, while confronting the issue in Lok Sabha, several Members\nof Parliament suggested amending the mechanism of setting up MPs emoluments by\nexcluding parliamentary committee and MPs.<\/p>\n\n\n\n<p>Moving forward, in the year 2018, Parliament made some changes to the aforesaid law via Finance Act, 2018 to overcome the conflict. The <em><strong>Finance Act, 2018<\/strong><\/em> advocates the periodic increment of MPs salaries and allowances against the cost inflation index mentioned under the IT Act, 1961.\u00a0<\/p>\n\n\n\n<p>The Salaries and Allowances of Ministers\n(Amendment) Bill, 2020 advocates the reduction of MPs&#8217; salaries which is\nproposed to help the government to spare considerable capital to put their\nfight against the COVID 19 pandemic.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Indeed the Salaries and Allowances of Ministers Amendment Bill have it significant as it involves all the MP to contribute to the common cause. But technically it won\u2019t be able to cope up with the current situation considering the fact that this saving (54 crores to be exact) is just 0.001% of the special economic package introduced by the government in the purview of the COVID 19 outbreak. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/code-on-social-security-2020\/\">An Outlook on the Code on Social Security, 2020: Latest<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/salary-and-allowances-of-ministers-bill-2020.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">salary-and-allowances-of-ministers-bill-2020<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Salaries and Allowances of Ministers (Amendment) Bill, 2020 has been passed by the Rajya Sabha on 18\/09\/2020 and Lok Sabha on Sep 20, 2020. The Bill regulates the salaries and allowance of the active minister including the PM. The Bill supersedes the&nbsp;Salaries and Allowances of Ministers (Amendment) Ordinance, 2020. Key Highlights of Salaries and [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":17529,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[1076],"acf":{"service_id":"220"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4017,"readingTime":2,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17513"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=17513"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17513\/revisions"}],"predecessor-version":[{"id":65147,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17513\/revisions\/65147"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17529"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}