Odisha Assembly Approves Major Pay Hike for Ministers and MLAs
Four bills passed unanimously revise salaries, allowances, and pensions for serving and former legislators, effective retrospectively from June 5, 2024.
Bhubaneswar: In a significant decision aimed at restructuring the compensation framework for public representatives, the Odisha Assembly on Tuesday unanimously passed four bills increasing the salaries, allowances, and pensions of ministers, MLAs, and former legislators. The revised financial entitlements will be implemented with retrospective effect from June 5, 2024.
Substantial Salary Increase for MLAs and Key Office-Bearers
Under the newly approved structure, the monthly salary of each MLA has been raised from ₹35,000 to ₹90,000. The Leader of Opposition and the Chief Whip will now receive ₹96,000 per month, up from ₹40,000, while the Deputy Chief Whip’s salary has increased from ₹36,000 to ₹92,000. Legislators argued that rising living costs and wider responsibilities required a more realistic compensation package to support their work.
Allowances for Legislators Witness a Steep Hike
The revised allowances form a major portion of the enhanced compensation package. Constituency and Secretariat allowances have jumped from ₹20,000 to ₹75,000 per month, offering lawmakers greater support for public engagement and administrative work.
Daily sitting allowance has doubled from ₹1,500 to ₹3,000, while outstation allowance has seen a dramatic rise from ₹2,000 to ₹10,000 per day. Travel allowances now stand at ₹25/km within Odisha and ₹35/km outside the state, compared to the earlier ₹15/km and ₹20/km respectively.
Other notable increases include a transport allowance of ₹50,000 per month (up from ₹15,000), a book and magazine allowance of ₹10,000 per month, and an electricity allowance raised from ₹5,000 to ₹20,000. Medical allowance has moved from ₹5,000 to ₹35,000 per month, and the housing allowance has doubled from ₹1,000 to ₹2,000 per day until official quarters are allotted. Committee travel allowance has also increased sharply from ₹10,000 to ₹50,000 per month, while the vehicle advance ceiling has been enhanced from ₹5 lakh to ₹10 lakh.
Revised Pay Package for Ministers
Pay structures for the Chief Minister, Deputy Chief Minister, Ministers, and Ministers of State have also undergone major revision. The Chief Minister’s salary has risen from ₹41,000 to ₹1,00,000 per month. The Deputy Chief Minister will now receive ₹98,000, Cabinet Ministers ₹96,000, Ministers of State ₹94,000, and Deputy Ministers ₹92,000.
Car maintenance allowances for ministers have increased substantially— the Chief Minister will now receive ₹91,000 per month, compared to ₹17,000 earlier. Personal allowances have also been revised, with the CM now entitled to ₹1.83 lakh per month, a significant jump from the earlier ₹40,000.
Speaker and Deputy Speaker Compensation Enhanced
Under the new structure, the Speaker will receive a salary of ₹98,000, a car maintenance allowance of ₹89,000, and a personal allowance of ₹1.81 lakh per month. The Deputy Speaker’s salary has been set at ₹94,000, with additional entitlements including ₹85,000 for car maintenance and a ₹1.77 lakh personal allowance. Daily sitting allowance for both positions has increased from ₹800 to ₹2,000.
Improved Pension and Benefits for Former MLAs
A major reform included in the bills is the revision of pensions for former MLAs. Their monthly pension has been increased from ₹35,000 to ₹80,000. The earlier requirement of completing one year of service to qualify for pension has been removed—eligibility now begins immediately upon election. For every additional year after five years, pension will increase by ₹3,000 (earlier ₹2,000).
Former MLAs will now receive a travel allowance of ₹12,500 per month and a significantly higher medical allowance of ₹25,000 per month. Families of first-time MLAs who pass away during their tenure will receive an ex-gratia payment of ₹25 lakh.
With the passage of these bills, Odisha has overhauled its legislative compensation system, aiming to align allowances and benefits with evolving responsibilities and rising costs, while also enhancing social security for former MLAs and their families.
