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Narendra Modi Salary: What India’s Prime Minister Actually Earns

The question of “how much does the country’s prime minister make” creates a great deal of interest in public life. When you search for “Narendra Modi salary,” you will see a large number of varying amounts. These can range anywhere from around ₹1.6 lakh per month up to almost ₹2.8 lakh per month. The difference is not due to any secrecy or hiding of information.

It is due to the fact that the amount paid to the Prime Minister consists of multiple components, and the guidelines governing these components have changed over time. This article will explain the structure of the Narendra Modi salary; compare it to other constitutional offices; identify some of the benefits associated with the position; and provide reasons why there are many varying salaries listed on various websites.

Narendra Modi Salary at a Glance

The first thing to know about Modi’s income is that he does not receive a separate payment package. Modi’s compensation is based on the salary associated with the position of Prime Minister. This compensation is regulated by the Salaries and Allowances of Ministers Act, 1952, and is funded through the Consolidated Fund of India. Since Modi serves as the Member of Parliament for Varanasi in the Lok Sabha, he is eligible to receive the same allowances as all other Members of Parliament.

The current pay structure of MPs has been effective since 1 April 2023. At this point, the Narendra Modi salary amounts to approximately ₹2.7 lakh in gross monthly pay. This amount includes basic pay, a sumptuary allowance that is given to the PM, a constituency allowance, and a daily allowance for every day he works. Older articles continue to refer to an amount close to ₹1.6 lakh, which was based upon the previous pay scale of MPs and therefore is no longer accurate.

Narendra Modi Salary: Component-by-Component Breakdown

To make it easier for you to see all the different parts, I have included the following table that shows what would happen over 30 days if you were using the new MP rates.

ComponentMonthly Amount (Approx.)
Basic pay₹1,24,000
Sumptuary (hospitality) allowance₹3,000
Constituency allowance₹70,000
Daily allowance (₹2,500 × 30 days)₹75,000
Estimated gross total₹2,72,000

The salary of the Prime Minister is the same as all other MPs. The only additional benefit that is provided to the Prime Minister is a sumptuary allowance which is meant to be used for the purpose of covering costs related to providing hospitality and holding official events. In addition, the Prime Minister receives a constituency allowance that covers the expense of communicating with constituents, and he/she receives a daily allowance for every day that he/she works. As the daily allowance is calculated based upon the number of days in the current month, the total amount that the Prime Minister receives can vary slightly from month to month.

Annual and Daily Figures

The most common way people want to compare Narendra Modi salary to the Private Sector (annual Cost-To-Company) is by seeing his salary at various intervals of time.

PeriodApproximate Gross Amount
Per month₹2.72 lakh
Per year₹32.6 lakh
Per dayAbout ₹8,900

The figures stated above are pre-tax gross amounts. How much money you will actually have available for spending is dependent upon your tax treatment and any additional deductions from your paycheck. There can be significant variation in published estimates of what you may be able to keep in hand; therefore, it is best to view these numbers as an approximation of what you could potentially earn, and not as official information.

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Why Different Websites Show Different Numbers

The main reason for this discrepancy is old data. In fact, for a long time, the basic salary of an MP was Rs. 50,000 per month. In addition, MPs received a constituency allowance of Rs. 45,000 per month, as well as a daily allowance of Rs. 2,000. Finally, there was a sumptuary allowance of Rs. 3,000. These three components combined to give us the current amount that has become so widely known – i.e., Rs. 1.6 to Rs. 1.66 lakh. Although MP salaries were increased in 2023, there were several websites/pages that did not update their content.

Another reason why prices can vary so much from site to site is how each site determines the number of days used for daily allowances. For example, some sites will use 30 days while other sites will use 31. There are also sites that don’t include this information at all. These variations create differences in price of tens of thousands of rupees.

A final reason is that some websites may provide only the ‘basic’ salary and others will list all of the extra payments (allowances) that are included in the total amount of money earned. Whenever you see a number, determine exactly what elements make up that number. For accurate and official figures, look at documents produced by the government instead of using other websites.

What About Take-Home Pay?

Gross amounts can be compared; however, readers frequently want to know how much money will go into their bank accounts. There is no single answer to this question because there are many different estimates of the “in-hand” salary that have been published. All of these estimates depend on various assumptions regarding tax treatment and other types of deductions, and none of them were taken directly from an official pay stub.

It is best to assume that the Prime Minister’s salary will be taxed based on the same laws that govern all other forms of income, and therefore, the exact amount he receives each month will vary depending upon his personal tax situation. If you come across a specific amount of “take-home” pay on the internet, do not believe it without checking to see if it was cited by a credible government website.

Narendra Modi Salary Compared With Other Posts

Another common question regarding the Prime Minister’s salary is how much he makes compared to other top-ranking positions in government. The surprising fact for most people reading this article is that the Prime Minister does not earn the most.

PostApproximate Monthly Salary
President of India₹5,00,000
Vice President of India₹4,00,000
State Governor₹3,50,000
Cabinet Secretary₹2,50,000
Prime Minister (Narendra Modi salary, with allowances)About ₹2.7 lakh
Member of Parliament (basic pay)₹1,24,000

The Prime Minister’s earnings are made up of his MP salary plus some additional amounts. This is different than the President, Vice President and Governors, whose salaries are fixed by law and therefore look much larger than they actually are. Like the Prime Minister, Cabinet Ministers also receive their own allowances in addition to their MP salaries. This may explain why many people believe that the Prime Minister of India is paid more than other officials in India.

Perks and Facilities Beyond the Pay

The salary is not the entire story. There are several benefits of working in an office which do not show up on your paycheck, however they have a great deal of value. These are designed to assist the office in doing its job, not to increase your income.

FacilityWhat It Covers
Official residenceAccommodation at 7 Lok Kalyan Marg, New Delhi
SecurityProtection by the Special Protection Group
Official travelAircraft and ground transport for duty
Medical careHealthcare support for the officeholder
Staff and officeSupport through the Prime Minister’s Office
Pension after officeReported MP pension of about ₹31,000 per month

These services are provided to the Head of Government based upon the requirements of his position. He requires continuous protection, secure communication channels, and the opportunity to make immediate trips, and the Government meets all three of these requirements. Therefore, if we were to count these services as part of his income, it would distort the actual amount of money that Narendra Modi receives as a result of being the Prime Minister.

Income, Assets, and Public Disclosures

Narendra Modi income, assets, and public disclosures infographic featuring financial savings, property, a car, and an assets and liabilities checklist.

When candidates run for election in India, they are required to submit an affidavit declaring their financial assets and liabilities, and this is considered a matter of public record. For example, Narendra Modi’s 2024 affidavit states he has a total net worth of approximately ₹3.02 crore. Most of this money is held in bank deposits and other types of savings vehicles. The publicly available data indicates that Modi’s income is primarily derived from his position as Prime Minister and the interest he receives from those deposits; however, if someone wishes to obtain additional specifics regarding his earnings, they must review the affidavit themselves on the Election Commission’s website.

These types of disclosures can help provide a baseline for understanding the Narendra Modi salary. In comparison to what some of the highest-paid employees (senior executives) at major corporations receive, these amounts are relatively small, as many commentators have noted in discussions about how much public servants should earn.

How the Prime Minister’s Pay Has Changed Over Time

The salary of the Prime Minister has increased incrementally in line with the revision of MPs’ pay by Parliament. Previous revisions increased MPs’ basic pay to ₹50,000 per month, while the 2023 revision resulted in a basic pay increase to ₹1,24,000. As the Prime Minister’s earnings are tied directly to the MP structure rather than being established independently, any subsequent revision to MPs’ pay will also result in a corresponding adjustment to Narendra Modi salary.

Revisions are often based on inflation and the cost of living. The last several revisions to the system have employed a cost inflation index method to adjust pay scales, but Parliament still has the ability to change the rules of the game.

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Conclusion

The most recent MP pay structure shows that his monthly gross salary is approximately ₹2.7 lakhs: ₹1,24,000 for basic salary, ₹3,000 for sumptuary allowance, ₹70,000 for constituency allowance and about ₹75,000 for daily allowance. Previous salary data that showed MP’s earnings of approximately ₹1.6 lakhs was based on an older pay scale and therefore is no longer relevant. 

In addition to the above-mentioned pay components, the office provides the Prime Minister with an official residence, security, and travel expenses; however, none of these represent additional income for him. For accurate information on Narendra Modi salary, use official government websites because many other sites will have old data on how salaries have changed.

FAQs About Narendra Modi Salary

1. What is the basic pay of the Prime Minister of India?

The basic pay is ₹1,24,000 per month, effective from April 1, 2023.

2. Does the Prime Minister get a special allowance?

Yes, the Prime Minister receives an annual sum of ₹3,000 to cover the costs of sumptuary expenses related to official entertainment and hospitality.

3. Is the Prime Minister’s salary higher than the President’s?

No. The President earns approximately ₹5 lakh per month.

4. Does the Prime Minister get a pension?

The news says that former MPs will likely be eligible for a pension worth about Rs. 31,000 each month based on their terms of service and other factors.

5. Where does the Prime Minister live?

The official residence is at 7 Lok Kalyan Marg in New Delhi.

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