Himachal Pradesh Increases Salary and Allowances for MLAs and Ministers: New Pay Package to Reach Rs 3.15 Lakh per Month
CM Sukhvinder Singh Sukhu during the budget session in the Assembly
Shimla, March 29: In a significant development in Himachal Pradesh, the state government has decided to increase the salary and allowances of Members of the Legislative Assembly (MLAs), the Chief Minister, Ministers, and the Speaker and Deputy Speaker of the Legislative Assembly. This decision, which has sparked considerable debate, was passed unanimously on the last day of the budget session of the Assembly. Chief Minister Sukhvinder Singh Sukhu introduced the Himachal Pradesh Legislative Assembly (Allowances and Pension of Member) Amendment Bill 2025, which was supported by all members of the House and passed after detailed discussions.
New Salary Structure for MLAs and Ministers
With the new amendments, the salary and allowances of MLAs in the state have been substantially increased. The basic salary of MLAs will now rise from Rs 55,000 to Rs 70,000, bringing their total monthly compensation to around Rs 3.15 lakh, up from the previous amount of Rs 2.10 lakh. For the Chief Minister, the monthly salary and allowances will be increased from Rs 2.65 lakh to Rs 3.40 lakh, while Cabinet Ministers and the Speaker and Deputy Speaker will now receive approximately Rs 3.30 lakh per month, up from their previous remuneration of Rs 2.55 lakh.
This increase will add a financial burden of approximately Rs 20 crore annually to the state’s exchequer. However, the government has argued that this adjustment is necessary to account for inflation and the increasing responsibilities of elected representatives.
Changes in Allowances and New Financial Guidelines
As part of the new amendments, several changes have been made to the structure of allowances provided to MLAs. The government has decided to abolish the Rs 15,000 telephone allowance that was previously provided to MLAs. Additionally, MLAs will now be responsible for paying their own electricity and water bills, which were previously covered by the government. These cuts are aimed at controlling unnecessary expenditures, though the government has emphasized that only MLA allowances and office allowances will continue to be provided.
Another noteworthy change introduced by the new legislation is the provision for automatic salary hikes every five years. According to this new rule, the salary and pension of MLAs will be increased every five years based on the price index. The next salary hike will take place on April 1, 2030. This automatic increase ensures that the salaries of elected representatives will remain in line with inflation and rising living costs over time.
Chief Minister and Opposition Leaders’ Views
During the discussion in the Assembly, Chief Minister Sukhvinder Singh Sukhu defended the increase, stating that the responsibilities of MLAs, particularly in their constituencies, often require them to incur expenses that exceed their income. He also recalled how, during the COVID-19 pandemic, MLAs had contributed part of their salary to support relief efforts. Sukhu noted that the increase in salary is the first in the last nine years, and that the decision was made in light of the inflationary pressures faced by public representatives.
Leader of the Opposition, Jairam Thakur, also supported the bill, recounting his own experience when he was first elected as an MLA. Thakur recalled earning a meager Rs 8,500 per month in the early years of his political career and how, even in those days, expenses such as mobile phone bills exceeded his salary. He argued that, in today’s economic climate, MLAs face significant financial challenges, particularly due to inflation and the additional expenses incurred through social and public work.
The increase in salary and allowances for MLAs and ministers in Himachal Pradesh is a historic move aimed at adjusting compensation to better reflect the responsibilities of elected representatives. While the increase may face scrutiny given the state’s financial challenges, it has been broadly supported by both the government and the opposition. As the state moves forward, the new salary structure is expected to address the growing financial needs of public servants, helping them manage their day-to-day expenses and enhancing their ability to serve their constituents effectively.
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