Sri Lanka abolishes MPs’ pensions; how India, Pakistan and Bangladesh compare

Scrapping pensions sparks regional political pay debate

Sri Lanka’s Parliament has voted to abolish pension benefits for lawmakers, responding to widespread public anger over political privilege as the country continues to grapple with a prolonged economic crisis.

The Bill was passed on Tuesday with an overwhelming majority, securing 154 votes in the 225-member House. Only two lawmakers opposed the move, while the remainder were absent. The new law takes effect immediately.

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.”

Election promise fulfilled after economic collapse

The decision delivers on a key pledge made by President Anura Kumara Dissanayake and his left-leaning government, which swept to power after Sri Lanka’s 2022 economic meltdown forced the resignation of former president Gotabaya Rajapaksa.

The administration has framed the abolition of MPs’ pensions as a moral obligation, arguing that elected representatives should not enjoy benefits disconnected from the hardships faced by ordinary citizens.

The move follows earlier steps to roll back political privilege, including stripping former presidents of state-funded residences, luxury vehicles and expansive security details.

Opposition warns of unintended consequences

Not everyone is convinced. Critics, including opposition leader Sajith Premadasa, have warned that removing pensions could discourage capable individuals from entering public life or push politicians towards corruption as they seek financial security after leaving office.

Justice minister Harshana Nanayakkara rejected those claims, telling lawmakers that voters “don’t think MPs deserve a pension” given the standard of debate and performance inside Parliament.

How other South Asian countries compare

The debate has reignited scrutiny of political perks across South Asia, including in India.

As of March 2025, former Indian MPs receive a lifelong monthly pension of Rs 31,000 after retirement, with an additional Rs 2,500 for every year of service beyond five years. Sitting MPs earn a monthly salary of Rs 1,24,000, along with daily allowances, constituency funds, free travel and subsidised housing.

In Pakistan, lawmakers are set to receive a monthly salary of PKR 519,000 under a proposed pay hike, even as the country faces deepening economic hardship.

Meanwhile, MPs in Bangladesh draw a comparatively modest basic salary but benefit from extensive allowances, tax exemptions, government housing, travel privileges and health coverage.

Welfare gap draws sharp criticism

Critics argue that India’s wider pension system reflects a stark imbalance. An article by NDTV noted that under schemes such as the National Social Assistance Programme, elderly people, widows and persons with disabilities receive just Rs 300–500 a month — amounts that have barely changed in nearly two decades.

That works out to roughly Rs 10–15 a day, a sum campaigners say is insufficient for food, medicine or basic dignity.

By contrast, politicians continue to receive salaries, pensions and perks that far outstrip what the poorest citizens are given, reinforcing what critics describe as a deeply unequal and morally indefensible system.