Salaries of legislators (PM, CMs, Ministers, MPs, MLAs...): India
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President, VP, governors
President of India: Rs Rs 50,000 a month
Vice-president of India: Rs 40,000
Governor of a state: Rs 36,000
As in Aug 2016
President of India: Rs 1.5 lakh a month
Vice-president of India: Rs 1.25 lakh
Governor of a state: Rs 1.1 lakh
The salaries of the President, the vice-president and governors were last fixed in 2008.
Salaries of President, Vice-President and governors: 2018, February
The FM has announced a hike in salaries of the President, Vice-President and governors, the first time in 12 years. Emoluments are proposed to be revised to Rs 5 lakh for the President, Rs 4 lakh for Vice-President and Rs 3.5 lakh per month for Governors.
Current salary of the President and VP are Rs 1.5 lakh and Rs 1.10 lakh per month respectively, much less than what top bureaucrats and service chiefs get. Laws had not been amended to rectify this anomaly which occurred after the implementation of the 7th Pay Commission’s recommendations two years ago.
Jaitley also proposed a law for an automatic revision of salaries for MPs every five years indexed to inflation. The remuneration of an MP includes a basic salary of Rs 50,000 per month and Rs 45,000 as constituency allowance, apart from other perks. The Centre spends Rs 2.7 lakh on an MP a month. According to PTI, MPs’ salaries will be hiked to Rs 1 lakh from Rs 50,000 from April.
After the implementation of the pay panel’s award on January 1, 2016, the cabinet secretary gets Rs 2.5 lakh per month.
Chief ministers’ salaries
Privy to the CM’s purse?
They Take Home Anything Between 1 & 12L Per Year
Harit Mehta & Chitra Unnithan | TNN
Ahmedabad: Chief ministers in India earn between Re 1 and Rs 12 lakh annually. Earning Rs 96,000 per year, Bengal CM Mamata Banerjee is the ‘poorest’ while Punjab’s Parkash Singh Badal, with a salary of Rs 12 lakh per annum, is ‘richest’.
Tamil Nadu’s J Jayalalithaa takes home a token salary of Re 1, according to Paycheck India, a research initiative of the Indian Institute of Management, Ahmedabad (IIM-A).
While the research at Paycheck India is led by Biju Varkkey, a faculty member of IIM-A, paycheck.in’s technical infrastructure is handled by WageIndicator Foundation, an Amsterdam-based non-profit organization.
At Rs 7,02,260 annually, which is close to Rs 60,000 per month, Gujarat’s Narendra Modi figures at No 6 in the list.
His rival, Bihar’s Nitish Kumar is the second highest paid CM with an annual salary of Rs 11,94,000 which comes to a monthly pay of Rs 99,500.
Paycheck India says it doesn’t have details about the salaries of five CMs: Nabam Tuki (Arunachal Pradesh), Oommen Chandy (Kerala), Naveen Patnaik (Odisha), Akhilesh Yadav (Uttar Pradesh) and Vijay Bahuguna (Uttarakhand).
The chief minister will now draw Rs 2.25 lakh a month
Chief ministers’, ministers’ perquisites
Chhattisgarh, Haryana, HP, MP, Uttarakhand, too
Not just Uttar Pradesh, the state exchequer has been bearing the burden of income tax of the serving chief ministers and their council of ministers in five states – Madhya Pradesh, Chhattisgarh, Haryana, Uttarakhand and Himachal Pradesh — for the last several years.
In its edition dated September 13, TOI had reported that the UP treasury had been paying income tax of all chief ministers and ministers since 1981, when the UP Ministers’ Salaries, Allowances and Miscellaneous Act, 1981 was passed during the tenure of V P Singh on the grounds that the ministers were “poor” and “cannot pay income tax from their own meagre earnings”. Hours after TOI published the report, UP CM Yogi Adityanath announced he would repeal the controversial provision in the Act.
Of the five states where chief ministers and their ministers are exempt from paying income tax, the treasury has been bearing their tax burden in Haryana and Himachal Pradesh since 1966, when the two states were carved out of Punjab.
Ministers’ I-T burden: U’khand may repeal law
In Punjab, the state treasury had been paying taxes on salaries, allowances and various perks of its CMs and ministers till March 18, 2018, when Captain Amarinder Singh stopped the practice by amending The East Punjab Ministers’ Salaries Act, 1947.
In Uttarakhand, the treasury has been bearing the tax burden of its CM, ministers, assembly speaker, deputy speaker and leader of the opposition ever since the Himalayan state was carved out of UP on November 9, 2000. Since then, the state has seen eight CMs and scores of others whose taxes were paid by the state exchequer. However, Uttarakhand CM Trivendra Singh Rawat on Monday indicated that he would follow his UP counterpart in repealing the controversial provision of the Act.
In MP, the state treasury started bearing the tax burden of ministers of all ranks as well as the parliamentary secretary with retrospective effect from April 1, 1994.
Members of Parliament (MPs)
As in 2016
Basic pay Rs 50,000 a month.
Entitlement of various facilities to ex-members of parliament
MLAs (Members of Legislative Assemblies)
State-wise comparisons: Dec 2015
The Times of India Dec 05 2015
See graphic, MLAs’ salaries in twelve Indian states...
A cabinet meeting, chaired by CM Arvind Kejriwal, cleared a hike in the salary of members of the Delhi Assembly from a monthly Rs 54,000 to Rs 90,000, which will include Rs 30,000 as salary and Rs 60,000 as allowances. The state government actually wanted to increase the salary to Rs 2.1 lakh per month but the Union home ministry capped it at Rs 90,000. The proposed enhancement will still leave the Delhi legislators among the poorest paid MLAs in the country though the cost of living in Delhi is higher than in many states.
The cabinet approved the Salaries and Allowances of Ministers of Government of National Capital Territory of Delhi (Amendment) Bill, 2021 and MLAs/Speaker-Dy Speaker/ Chief Whip/Leader of Opposition of Legislative Assembly of Delhi (Amendment) Bill, 2021. The proposals and draft bills will now go the lieutenant governor for approval before being placed in Delhi Assembly.
“Restriction imposed by the Centre has forced Delhi’s MLAs to be among the lowest paid MLAs in India. MLAs of other states earn1.5-2 times more than Delhi MLAs,” a government source said. “Salary of Delhi’s MLAs hasn’t increased since 2011. Delhi government had requested home ministry to bring their salary at par with MLAs of other states.” In Uttarakhand, an MLA gets a monthly Rs 2.04 lakh, in Telangana Rs 2.5 lakh, Karnataka Rs1.65 lakh, Andhra Pradesh Rs1.75 lakh, Goa Rs1.99 lakh and Bihar Rs 1.35 lakh.
The Bill proposes Rs 30,000 as salary for MLAs, Rs 25,000 as constituency allowance, Rs 15,000 as secretarial allowance, Rs10,000 as telephone allowance and Rs10,000 as conveyance allowance. Many states also provide other perks such as house rent, office rent and staff expenses. A government official said that the salary hike proposal had to traverse a long route before the increment was implemented. “Since the cabinet has approved the bills, it will be sent to the LG for consideration and approval. After the LG’s approval, it will be presented in the assembly as a financial bill. The salary hike will be implemented only after the assembly passes the financial bill and the LG signs it,” said the official.
The salary (including allowances) of Delhi’s MLAs has not changed in the last 10 years. It was raised to Rs 54,000 in November 2011 and has remained unrevised since then though inflation has eaten into real incomes. “The proposal for an increase in salary and allowances of Delhi MLAs was pending with the Union home ministry for five years. After several discussions, the Centre decided to limit the salary to Rs 90,000 per month,” said an official.
Tamil Nadu: 2017
2017: MLAs in Tamil Nadu got a 90% hike in their salaries and allowances. The salaries and allowances of 234 MLAs (including the speaker) will increase from Rs 55,000 per month to Rs 1,05,000. An MLA's salary itself has been increased from Rs 8,000 to Rs 30,000; other allowances have also increased considerably.
The MLAs also received a hike in the MLA Constituency Development Fund from Rs 2 crore a year to Rs 2.5 crore.
Among the allowances the MLAs are entitled to, the constituency allowance got the highest increase -from Rs 10,000 to Rs 25,000 a month. The CM also increased his own allowance as well as those of his cabinet colleagues. “Allowances of the CM, the ministers, the speaker, the deputy speaker, the leader of the Opposition and chief whip of the government will also be increased. Former MLAs will get Rs 20,000 as pension -double from the present amount -and families of former MLAs will get Rs 10,000 as family pension,“ said Palaniswami.
The salary of the MLAs has been raised from just over Rs 70,000 to Rs 1.16 lakh per month. Ministers and those in key posts in the state assembly will draw a monthly salary of Rs 1.32 lakh. The MLAs will get arrears from February 2018. The total burden of arrears on the exchequer will be more than Rs 6 crore. The minister of state for home Pradeepsinh Jadeja tabled the The Gujarat Salaries and Allowance of Members, Speaker and Deputy Speaker of the Gujarat Legislative Assembly, Ministers and Leader of the Opposition Laws (Amendment) Bill, 2018. The BJP and the Congress had agreed a week ago in the assembly business committee to pass this bill but had not included it in the list of daily business. Jadeja suddenly introduced the bill saying that the leader of the opposition, Paresh Dhanani, had agreed to have the bill introduced. Dhanani and the deputy leader of the opposition, Shailesh Parmar, supported the bill and it was unanimously passed after a brief discussion.
“The salaries and allowances of all MLAs was last revised way back in 2005,” Jadeja stated in the statement of objects and reason. “It is considered necessary to revise salaries and allowances. It is hence proposed to pay MLAs salary per month at the rate of minimum basic pay payable to the deputy secretary of the state government.”
The bill also proposed to do away with multiple allowances and introduced dearness allowance for MLAs to be paid on a par with the allowance paid to government employees.
Ministers, the speaker, the deputy speaker and the leader of the opposition will get 25% more than the basic salary earned by the MLAs.
Impact on government revenues
2017-18: shortfall of Rs 50,000-crore
The Centre is staring at a Rs 50,000-crore shortfall in goods and services tax collections in 2017-18, but is hoping to more than make up by budgeting a 67% jump in collections in 2018-19 which may help cut rates ahead of the 2019 elections.
The FM said one reason for the shortfall was the Centre will collect indirect taxes only for 11months in the current fiscal. A part of GST paid in March will be credited in April and will be shown as revenue accrued in 2018-19. Lowerthan-estimated collections have been a factor for the Centre missing the fiscal deficit target of 3.2% of GDP and close the year with 3.5%. Though GST rates have been cut for over 200 items since its introduction on July 1, key reasons for revenue slippage was the GST Council’s call to suspend anti-evasion steps like matching invoices of buyers and sellers and the reverse charge mechanism to keep tabs on unregistered businesses. Rollout of e-way bills was deferred till February 1.
The Centre also has to compensate states if growth in collections is less than 14%. It is hoping GST regime will stabilise soon and with a bigger base of taxpayers along with anti-evasion measures revenues will start growing much faster in 2018-19. It has projected over 60% rise in tax revenues in the next fiscal year.
MPs, MLAs, as in 2022
Four components of an MP’s compensation are fixed — salary, constituency allowance, office expense and salary for secretarial assistant. The variable component is the travel allowance, which can often become a malleable instrument of pay inflation. In 2019, Shimla MP Virender Kashyap (now former MP) filed a travel allowance bill of Rs 20 lakh — for 180 days between January and March.
How much are former MPs and MLAs being paid? MPs who have served even a day in Parliament get Rs 25,000 a month for the rest of their lives. Among states, 20 pay more pension for one term than the Parliament does.
For every additional year after a term, there is an increment. And when a former legislator dies, their spouse or child gets a part of the pension. For former MPs, every extra year after the first five-year tenure means an additional Rs 2,000. So, an eight-time Lok Sabha MP like Sanat Kumar Mondal (who represented West Bengal’s Jaynagar straight from 1980 to 2009) is entitled to Rs 73,000 as pension. Among states, these numbers vary widely (only eight states have laid down upper limits for MLA pensions).
A former MLA in Manipur gets Rs 70,000, the highest political pension in the country. For every year past the five-year tenure, an additional Rs 4,000 is paid. A former MLA like Ngamthang Haokip, who was also a state minister (we have not included ministers’ pensions in the analysis), served five terms. That’s 25 years. Which means a pension of Rs 1.5 lakh (Rs 70,000 for first term + Rs 80,000 for the additional 20 years).
These are conservative estimates not taking into account the allowances and travel benefits nearly every former legislator is entitled to.
Gujarat is the only state that pays no pension to its former MLAs. A law determining pensions for former representatives had been passed in 1984 (Rs 300 for one term, Rs 60 for every additional year). But former CM Babubhai Patel, who was then in opposition, said it was an “immoral act” and announced protests. In 1986, India Today reported that 78 MLAs had refused pension. While the law was enacted in 1989, five years later, no MLA was ever paid any pension. In 2001, the Gujarat government repealed the Act.
There is no income criterion for political pension. And while most of these laws — both for the Parliament and for assemblies — started out with a minimum-tenure clause for pension eligibility, only four states retain it. Assam (four years), Odisha (one year), Tripura and Sikkim (both five years). The term-length criterion for MPs was removed in 2004.
So, Sunil Shastri (who served as a Rajya Sabha MP for 198 days in 2002), industrialist Anil Ambani (an Independent Rajya Sabha member from 2006 to 2010, with a net worth of Rs 50,000 crore in 2012 though it’s down to zero now) and Communist representative Saman Pathak (who had declared zero assets before his six-year Rajya Sabha tenure) are all entitled to the same pension — Rs 25,000.
The “even one day” rule also means an unstable seat ends up costing people more. Between 1994 and 1999, Andhra Pradesh’s Mummidivaram assembly constituency had three MLAs. First, there was former minister Battina Subbarao from Congress. In 1996, Telugu Desam Party’s Ganti Mohana Chandra Balayogi became MLA in a byelection. Two years later, in another bypoll after Balayogi became the Lok Sabha speaker, another representative from the party, Chelli Vivekananda won. So, for one seat, Andhra Pradesh paid thrice the pension for one term.
This brings up another question. Balayogi passed away in 2002. Had he not, which pension would he — like hundreds of others who switch from Parliament to assembly and the other way round — be eligible for? The answer came in response to a Right to Information question in 2014. The Rajya Sabha Secretariat responded that an MP getting “any other pension” will continue to get benefits as an ex-MP.
How is political pension determined?
There is no formula, except an inflation-linked increase every five years starting 2023. Six provisions in the Constitution assign the responsibility of deciding what elected politicians should be paid to the elected politicians themselves.
In Parliament, a joint committee of both houses — with five members from the Rajya Sabha nominated by the chairperson and 10 members from the Lok Sabha nominated by the speaker — takes a call on matters related to salary and allowances.
But because no provision mentions “pension” or “former” legislators explicitly, an NGO challenged lifelong pensions for former MPs in Allahabad high court. The court dismissed the petition. The NGO then approached the Supreme Court which, after examining the language of these laws, said:
“ On a true and proper construction of the text of those provisions, they do not mandate the payment of pension. They only protect the pension if payable.”
At the same time, the apex court added, there is:
“The need to secure the independence of the holders of those offices by assuring them that either the legislature or the executive will not be able to deprive them of the financial resources necessary to keep them away from impecuniousness.” So, the Supreme Court said, the absence of references to pension “ does not lead to the conclusion that the Constitution by its silence prohibits the payment of pension to … constitutional functionaries.” The case was dismissed.
Another aspect of the provisions was contested in the Madhya Pradesh high court in 1996. A social worker had asked why pensions for former MLAs did not mandate a minimum period of membership. “ It is contended that even (an MLA) who has remained as such for a period of a day, would also be entitled for pension,” the petitioner said, asking for a five-year base — which was originally a pension eligibility criteria — be reinstated.
In response, the Madhya Pradesh government said that pension for MLAs is “ in lieu of services rendered by them because it is not easy to seek confidence of voters … One has to work with interest and sincerity for a good number of years.” The high court upheld the demand for pension.
But the Madhya Pradesh government’s response raises another question — what are “services” in this context? Is it part of public service, as those opposing pensions have argued? Or are these to be understood as work with a transactional mechanism?
On a purely technical note, politicians rarely ever list “politics” as their profession — only 10% of those in the 2014 Lok Sabha had. The highest share was that of business (20%). The average annual income of 2014 Lok Sabha representatives was over Rs 30 lakh. That of Indian citizens is just over Rs 2 lakh.
Lead illustration: Sajeev Kumarapuram
Salaries and Allowances of Ministers Act, 1952
DEFINITION: In this Act, ‘Minister’ means a member of the Council of Ministers by whatever name called, and include a Deputy Minister.
3(1) Each Minister shall be entitled to receive a salary per mensem, and an allowance for each day during the whole of his term as such Minister at the same rates as are specified in Section 3 of the Salaries, Allowances and Pension of Members of Parliament Act, 1954 with respect to Members of Parliament.
3(2) Each Minister shall be entitled to receive a Constituency Allowance at the same rate as is specified under Section 8 of the said Act with respect to Members of Parliament.
4(1) Residence of Ministers: Each Minister shall be entitled without payment of rent to the use of a furnished residence throughout his term of office and for a period of 3
- (one month) immediately thereafter, and no charge shall fall on the Minister
personally in respect of the maintenance of such residence.
$[ (2) In the event of the death of the Minister, his family shall be entitled to the use of the furnished residence occupied by the Minister:-
(a) for a period of one month immediately after his death, without payment of rent and no charge shall fall on the family of the Minister in respect of the maintenance of such residence, and
(b) for a further period of one month, on payment of rent at such rates as may be prescribed by rules made in this behalf by the Central Government and also charges in respect of electricity and water consumed in that residence during such further period.]
EXPLANATION: For the purpose of this Section ‘residence’ includes the staff quarters and other buildings apartment thereto, and the gardens thereof, and ‘maintenance’ in relation to a residence includes the payment of local rates taxes and to provision of electricity and water.
5. There shall be paid a sumptuary allowance to each Minister at the following rates, namely: The rates given below have been revised since
(a) The Prime Minister - Rupees three thousand per mensem;
(b) every other Minister - who is a Member of the Cabinet: Rupees two thousand per mensem;
(c) a Minister of State - Rupees one thousand per mensem;
(d) a Deputy Minister - Rupees six hundred per mensem.
6. Travelling and daily allowance to Ministers:
Minister shall be entitled to:-
(a) travelling allowance for himself and the members of his family and for the transport of his and his family’s effects –
(i) in respect of journey to Delhi from his usual place of residence outside Delhi for assuming office; and
(ii) in respect of the journey from Delhi to his usual place of residence outside Delhi on relinquishing office; and
(b) travelling and daily allowance in respect of tours undertaken by him in the discharge of his official duties, whether by sea, land or air.
(1A) A Minister shall be entitled to traveling allowance in respect of not more than twelve return journeys performed, during each year, within India, for himself and his family, whether travelling together or separately at the same rates at which travelling allowance is payable to such Minister under clause (b) of sub-section (1) in respect of tours referred to in that clause, subject to the overall entitlement of forty eight single journeys in each year.
(2) Any travelling allowance under this Section may be paid in cash or free official transport provided in lieu thereof.
7. Medical treatment etc. to Minister – Subject to any rules made in this behalf by the Central Government, a Minister and the members of his family shall be entitled free of charge to accommodation in hospitals maintained by the Government and also to medical treatment.
8. Advance to Ministers for purchase of motor car – There may be paid to any Minister by way of a repayable advance such sum of money as may be determined by rules made in this behalf for the purchase of a motor car in order that he may be able to discharge conveniently and efficiently the duties of his office.
9. Minister not to draw salary or allowances as Members of Parliament – No person in receipt of a salary or allowance under this Act shall be entitled to receive any sum out of funds provided by Parliament by way of salary or allowances in respect of his membership of either House of Parliament.
10. Notification respecting appointment etc., of Ministers to be conclusive evidence thereof - The date on which any person became or ceased to be a Minister shall be published in the Official Gazette, and any such notification shall be conclusive evidence of the fact that he became, or ceased to be, a Minister on that date for all purposes of this Act.
10A. Notwithstanding anything contained in the Income Tax Act, 1961, the value of rent free furnished residence (including maintenance thereof) provided to a Minister under sub-section (1) of section 4 shall not be included in the computation of his income chargeable under the head ‘Salaries’ under section 15 of the Income Tax Act, 1961. (3) Notwithstanding anything contained in section 11 of the Principal Act, as it stood immediately before the commencement of this Act, no rule made, or purporting to have been made by the Central Government under that Section with retrospective effect and no action taken or things done in accordance with the rule so made, at any time before the commencement of this Act, shall be deemed to be invalid or ever to have been invalid by reason only of the fact that the Central Government had no power to make such rule retrospectively under that section.
12. Regularisation of certain payments – All salaries paid or payable for the period commencing on the 14th day of May, 1952, and ending with the commencement of this Act to Ministers described as Minister of Cabinet rank (but not Member of the Cabinet), all charges incurred before the commencement of this Act in respect of the accommodation provided in any hospital maintained by the Central Government for or on the medical treatment of any Minister or any member of his family and all payments made before such commencement by way of travelling or daily allowances to any Deputy Minister, shall be deemed to have been properly paid payable or incurred or made.
13. Repeal of Act LIII of 1947 – The Salaries of Ministers Act, 1947 is hereby repealed.
Salary, Allowances and Pension of Members of Parliament Act, 1954
3. Salaries and Daily Allowances: A member shall be entitled to receive a salary at the rate of sixteen thousand rupees per mensem (w.e.f. 14-9-2006) during the whole of his term of office and subject to any rules made under this Act and allowances at the rate of one thousand rupees (w.e.f. 14-9-2006) for each day during any period of residence on duty.
8. A member shall be entitled to such constituency allowance and to such housing, telephone, water, electricity facilities or such amount in cash in lieu of all or any of such facilities as may be prescribed by rules under Section 9.
The Members of Parliament (Constituency Allowance) Rules, 1986.
2. Amount of Constituency Allowance: A member shall be entitled to receive the Constituency Allowance under section 8 of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954) at the rate of rupees twenty thousand per mensem (w.e.f. 12-12-2006).
Amendments to the Act after 1976 sought to be quashed
They seem unreasonable, guidelines needed: Court
The Supreme Court raised a question mark over benefits and pension for former MPs and MLAs, observing that these facilities on the face of it seem unreasonable and asked the Centre why this should not be scrapped.
A bench of Justices J Chelameswar and S Abdul Nazeer favoured framing of guidelines for extending allowances to former legislators.
The court stressed the need for guidelines while saying there was nothing wrong in providing some financial assistance to ensure former legislators do not live a life in penury after leaving office.
The court direction came on a petition filed by NGO Lok Prahari, seeking to do away with unnecessary allowances and perks to former lawmakers which is being paid from tax payers' money.
Advocate Kamini Jaiswal, appearing for the NGO, contended that pension is provided to government officials out of funds contributed by the employee and government but former law makers are paid pension out of the Consolidated Fund of India that they have not contributed to.
“Pension is given for the purpose of providing financial assistance to a retired person but 80% MPs are crorepatis and do not require pension. It is a largesse given to them and there are no guidelines and law to regulate facilities provided to them,“ she told the bench. She said the issue of providing pension to former MPs was discussed by the constituent assembly while framing the Constitution and was rejected. Jaiswal said that earlier former law makers were entitled for pension only after completing four years. The law was subsequently amended and an exMP became eligible to claim pension after being a member of the House even for a day.
Jaiswal said the apex court had in 1976 upheld the law to grant pension to former law makers but the many unreasonable amendments were since brought in through the Salary , Allowances and Pension of Members of Parliament Act. She pleaded all changes in the Act after 1976 be quashed.The court, after a brief hearing, said issues raised by the petitioner needed examination and issued a notice to the Centre. It said facilities and allowances given to them must be reasonable and not arbitrary.
The petitioner approached the SC after the Allahabad HC dismissed its plea.
“While Governors do not have the facility of pension at all, an MP even for a day and his spouse get pension for life.While even serving judges of the Supreme Court and high courts do not have the facility of free airtrain travel for their spouses even on official tours, ex-MPs enjoy unlimited free train travel for life in AC-II with a companion 365 days a year,“ the petition said.
Salaries of legislators (PM, CMs, Ministers, MPs, MLAs...): India