As Sri Lanka Scraps Pensions For Its MPs, Here's How India And Neighbours Pay Their Lawmakers

Last Updated:February 18, 2026, 11:48 IST

Lanka has described the move as a moral obligation towards greater accountability since lawmakers should not receive benefits that are out of touch with the common man's struggles

The Parliament of Sri Lanka, reacting to the massive public outrage against the economic crisis that has been gripping the country for a long time, has now decided to reduce political benefits and eliminate pension benefits for lawmakers. On Tuesday, the Bill was easily passed with a majority of 154 votes out of 225 members, with only two members opposing it and the rest absent.

According to AP News, “Under the former system, Members of Parliament were entitled to a pension after only five years of service in office—a provision that critics said was grossly excessive compared with the terms of other public employees and contributed to perceptions of political privilege. The new law takes effect immediately and eliminates pension benefits, including for those who are already receiving or eligible to receive them."

This also meets one of the major election promises of President Anura Kumara Dissanayake and his left-leaning administration, which won power after the country’s economic breakdown in 2022, leading to the resignation of then-President Gotabaya Rajapaksa. Dissanayake’s administration has described this as a moral obligation and a move towards greater accountability, since lawmakers should not receive benefits that are out of touch with the struggles of the common people.

The abolition of pensions follows earlier moves by the government to strip former presidents of generous perks, including state-funded housing, luxury vehicles and extensive security details. While critics of the pension repeal, including opposition leader Sajith Premadasa, argue that removing them could discourage public service or push politicians toward corruption as they seek financial security after office, justice minister Harshana Nanayakkara told lawmakers that voters “don’t think MPs deserve a pension" given the quality of political debate and performance in the legislature.

India & Its Neighbours

The debate over post-retirement benefits has also brought the spotlight on other countries, including India.

In India, as of March 2025, former MPs receive a monthly pension of Rs 31,000 after retirement. For each additional year of parliamentary service beyond five years, they receive an extra Rs 2,500 per month on top of the base pension. Once an MP becomes eligible (typically after completing a term), they receive this pension for life.

Apart from this, they also receive the following renumeration:

• Monthly salary as a parliamentarian: Rs 1,24,000 (post-revision).

• Daily sitting allowance: Rs 2,500 on days Parliament meets

• Constituency and office allowances: MPs receive separate allowances to manage constituency work and office expenses.

• Travel & housing perks: These include free domestic flights (34 per year), free first-class train travel, rent-free accommodation (or housing allowance), and communications reimbursements.

Compared to India, lawmakers in Pakistan will be entitled to a monthly salary of PKR 519,000 (approximately $1,852) once a new Bill to increase their emoluments is enacted. The Bill comes amid Pakistan’s deteriorating economic conditions, with civilians forced to endure severe hardships for even daily needs.

Meanwhile, in Bangladesh, MPs receive lower basic salaries compared to India and Pakistan, but they also receive numerous allowances and allowances in kind. While the monthly salary is BDT 55,000 (approximately $455), they receive allowances such as constituency, transport (BDT 70,000), office expenses, entertainment, etc. Other perks include government-provided housing with free utilities, duty-free vehicle import, travel benefits (air, rail, water and road travel allowances), health allowances and insurance coverage, discretionary grant fund options, and tax benefits—allowances are tax-exempt in many cases.

A Deeply Unequal System

Critics argue that India’s social security pension system is deeply unequal, effectively prioritising politicians over the most vulnerable citizens. According to an NDTV article, under schemes like the Social Assistance Programme (NSAP), elderly people, widows, and persons with disabilities receive a monthly pension of just Rs 300-Rs 500, depending on age and category. In over a decade, these amounts haven’t been meaningfully revised, with some pension levels dating back more than 18 years without adjustment for inflation.

Broken down, the benefit amounts to roughly Rs 10-Rs 15 per day, which critics say doesn’t even cover basic needs such as food, medicine, or dignity.

By contrast, elected legislators across states continue to receive high salaries and allowances and maintain pension benefits that are many times larger than what the poorest citizens receive. Apart from this, they enjoy other perks such as free travel, allowances, and benefits that are inaccessible to ordinary pensioners.

Critics argue that the imbalance turns the welfare system into a “cruel joke" where the poorest get amounts too low to live on, while the political elite expand their own privileges.

News explainers As Sri Lanka Scraps Pensions For Its MPs, Here's How India And Neighbours Pay Their Lawmakers

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