‘Salary should be increased according to inflation’, Raghav Chadha demands to make law in Parliament

New Delhi: Aam Aadmi Party’s Rajya Sabha MP Raghav Chadha has raised a big issue in Parliament on Thursday. He has demanded immediate enactment of ‘Inflation Linked Salary Revision Act’ (inflation linked salary revision law) in India. He says that this law will save employed people from losses caused by inflation. During the debate on Union Budget 2026-27, Raghav Chadha said that the real income of salaried Indians has decreased by 16 percent between the financial year 2018 to 2026. The reason for this is that the increase in salaries was less than the pace of inflation.

‘People’s purchasing power has decreased due to inflation’

Chadha said that due to inflation, the purchasing power of people has reduced, which means that despite economic growth, it has become a kind of ‘personal pay cut’ for millions of people. He said that inflation silently eats away hard-earned money. Government employees are protected by increases in Dearness Allowance (DA) and pay commission, but 85 percent of the country’s formal private sector employees have no legal protection. They depend only on the kindness of the company or the power of their negotiations.

Raghav Chadha gave example of other countries

Raghav Chadha gave examples of some countries of the world, where such laws are already in operation. In America, salaries increase automatically due to Cost of Living Adjustment (COLA). Salary updates are mandatory in Germany every 18-24 months. Every year in Japan, there is an increase in inflation according to the ‘Shunto’ system. Indexation takes place every quarter in Belgium. He said that India should also make such laws in which the minimum wage increase is linked to the inflation index. Chadha said that this will bring fairness.

‘The Act will protect the dignity of workers’

Speaking in Parliament, Raghav Chadha said that inflation should not be allowed to become India’s ‘silent pay cut’. He demanded legal protection for all formal sector workers. In view of the economic challenges of FY26, he said that this Act is necessary. This will ensure fair development in the world’s fastest growing major economy and protect the dignity of workers.

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