Himachal Assembly hikes MLA salaries but scraps free electricity, water, phone perks

Shimla (Himachal Pradesh) [India], March 28 (ANI): The Himachal Pradesh Legislative Assembly on Friday passed a set of amendment bills increasing the salaries and allowances of ministers, MLAs, the Speaker, and the Deputy Speaker. However, the salary hike comes with a major trade-off, as key allowances such as electricity, water, and telephone bills have been scrapped.
Chief Minister Sukhvinder Singh Sukhu introduced and reintroduced these amendment bills as part of the supplementary legislative agenda during the ongoing Budget Session. Among the key legislations passed were the Ministers' Salaries and Allowances (Himachal Pradesh) Amendment Bill, 2025 (Bill No. 8).
This bill revises the compensation structure for state ministers by amending the Ministers' Salaries and Allowances Act, 2000, the Himachal Pradesh Legislative Assembly (Members' Allowances and Pension) Amendment Bill, 2025 (Bill No. 9) Modifies the 1971 Act governing MLAs' pensions and allowances and the Himachal Pradesh Legislative Assembly Speaker and Deputy Speaker's Salary (Amendment) Bill, 2025 (Bill No. 10), Amends the 1971 Act to revise the remuneration of the Speaker and Deputy Speaker.
Presenting the bills, 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.
Following deliberations, the Assembly passed the bills unanimously, and they will come into effect after receiving the Governor's assent.
Despite the increase in salaries, estimated at Rs 25,000 to Rs 30,000 per month, the government has abolished key allowances, including a Rs 20,000 Telephone Allowance and electricity and Water Bill Allowances. This 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.
On the final day of the Budget Session, during an evening session, Chief Minister Sukhu made a surprising announcement: While the salary structure was being revised, three allowances were being eliminated. He further clarified that going forward, MLAs' salaries will be adjusted based on the price index, rather than being revised arbitrarily.
With these changes, MLAs will now only receive constituency and office allowances. Additionally, the telephone allowance for former MLAs has also been discontinued.
The decision to increase lawmakers' salaries while the state faces economic challenges has triggered mixed reactions. Supporters of the move argue 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.
The Himachal Pradesh government has signalled its stance on maintaining financial support for its elected representatives, but the scrapping of key allowances has added an unexpected dimension to the decision.
The exact details of the revised pay structure will be released in the official gazette notification soon. (ANI)