Himachal MLAs To Get Higher Salaries, But No More Freebies

Shimla: The Himachal Pradesh Legislative Assembly has passed a set of amendment bills, increasing the salaries and allowances of ministers, MLAs, the Speaker, and the Deputy Speaker. However, this hike comes with a big trade-off, as key allowances such as electricity, water, and telephone bills have been scrapped. The decision, meanwhile, has led to mixed reactions, with several supporters arguing that fair compensation is essential for dedicated governance, while others questioned the timing of the hike amidst the state's economic challenges.

Chief Minister Sukhvinder Singh Sukhu introduced and reintroduced the amendment bills as part of the supplementary legislative agenda during the ongoing budget session. The Ministers' Salaries and Allowances (Himachal Pradesh) Amendment Bill, 2025, revises the compensation structure for state ministers, while the Himachal Pradesh Legislative Assembly (Members' Allowances and Pension) Amendment Bill, 2025, modifies the 1971 Act governing MLAs' pensions and allowances. The Himachal Pradesh Legislative Assembly Speaker and Deputy Speaker's Salary (Amendment) Bill, 2025, amends the 1971 Act to revise the remuneration of the Speaker and Deputy Speaker.

According to the new structure, MLAs' salaries will increase by Rs 25,000 to Rs 30,000 per month. However, this hike is offset by the abolition of key allowances, including a Rs 20,000 telephone allowance and electricity and water bill allowances. The change in MLAs' salaries and allowances means that instead of benefiting from the salary hike, MLAs may now have to spend more from their pockets to cover these expenses, which were earlier reimbursed by the government.

Adjustments Were Necessary: CM Sukhu

Chief Minister Sukhu emphasised that the adjustments were necessary to keep up with inflation and the increasing responsibilities of public representatives. "Public representatives carry immense responsibility in governance and policymaking. Revising their compensation ensures they can dedicate themselves fully to public service," he stated while tabling the bills. The Assembly passed the bills unanimously, and they will come into effect after receiving the Governor's assent.

The decision to link MLAs' salaries to the price index, rather than revising them arbitrarily, is a big departure from the past. The move aims to ensure that salaries keep pace with inflation, providing a more stable and predictable income stream for lawmakers. However, critics argue that this decision may not be well-timed, given the state's current financial stress.

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Reactions and Implications

The decision has triggered mixed reactions, with supporters arguing that fair compensation is essential for ensuring dedicated and efficient governance. However, critics question the timing of the hike, especially when the government is attempting to control expenditures and tackle financial stress.

Look At Allowances Axed

The scrapping of key allowances has added an unexpected dimension to the decision. The allowances that have been eliminated include:

• Telephone Allowance: Rs 20,000 per month
• Electricity and Water Bill Allowances: Reimbursed by the government earlier

Constituency and Office Allowances

With the changes, MLAs will now only receive constituency and office allowances. The telephone allowance for former MLAs has also been discontinued. The exact details of the revised pay structure will be released in the official gazette notification soon.