Presenting the Union Budget for 2018-19 in the Lok Sabha, Jaitley said that the present system, which provides for MPs to recommend increase in their salary, had invited criticism and was being changed.
"There has been considerable public debate with regard to emoluments paid to Members of Parliament. The present practice allows the recipients to fix their own emoluments which invites criticism. I am, therefore, proposing necessary changes to refix the salary, constituency allowance, other expenses payable to Members of Parliament with effect from April 1, 2018," Jaitley said.
"The law will also provide for automatic revision of emoluments every five years indexed to inflation," he added.
Several MPs in Lok Sabha had demanded hike in their salaries during debate on the Bill to hike salaries of judges of the Supreme Court and High Court in the Winter Session of Parliament.
Under the present system, a Parliamentary committee having members from both Houses of Parliament makes its recommendations on the salaries and allowances of MPs, and the government takes appropriate decision and brings an amendment Bill. Such amendment proposals are usually approved with consensus in Parliament.