In a bold and unprecedented move, the Odisha Legislative Assembly on Tuesday approved a massive 211 percent increase in salaries and allowances for MLAs, propelling the state’s legislators into the top echelon of pay across India. The hike, passed through four separate bills without a single dissenting vote, has drawn attention not only for its magnitude but also for the contrast it presents with the low minimum wages and average incomes of ordinary workers in the state.
The legislation raises the monthly emoluments of MLAs from ₹1.11 lakh to ₹3.45 lakh, Chief Ministers from ₹98,000 to ₹3.74 lakh, ministers from ₹97,000 to ₹3.58 lakh, and the Speaker from ₹97,500 to ₹3.68 lakh. These increases are effective retroactively from June 2024, reflecting the first substantial revision since 2017. In addition to salaries, the bills provide a ₹25 lakh assistance package for the family of a sitting MLA in the event of death, along with mechanisms for automatic salary, allowances, and pension adjustments every five years, which can also be enacted via ordinance. Pensions for former MLAs have risen sharply from ₹30,000 to ₹80,000, with additional increments for those with longer legislative service.
This revision positions Odisha ahead of traditionally high-paying states such as Telangana, where MLAs earn around ₹2.50 lakh monthly, Maharashtra at ₹2.52 lakh, and Uttar Pradesh at ₹1.87 lakh following recent incremental hikes. Karnataka’s legislators, who received a 100 percent raise earlier this year, now earn ₹1.60 lakh, while salaries in Delhi and Kerala remain ₹90,000 and ₹70,000 respectively. Odisha’s hike, therefore, represents a quantum leap, establishing the state as the highest-paying legislature in India.
Despite this legislative largesse, Odisha continues to lag in terms of minimum wages and per capita income. The state’s unskilled workers earn roughly ₹12,012 per month, significantly lower than the ₹18,460 in Delhi. The state’s per capita income stands at ₹1,82,548, falling short of the national average of ₹2,05,324. This stark contrast has fueled public debate, with critics questioning the priorities of a government willing to triple legislators’ pay while social welfare and worker wages remain comparatively low.
The pay increase received strong bipartisan support within the Assembly. The proposal was initiated and championed across party lines, reflecting a rare consensus on self-compensation. BJD veteran Pramila Mallik, a seven-time legislator, advocated a 2.5-fold increase, highlighting the rising financial pressures faced by former MLAs due to medical expenses and inflation. Members of the Congress and BJP echoed concerns, arguing that the previous pay scales were inadequate relative to other states and failed to account for the financial burdens of constituency work. Chief Minister Mohan Charan Majhi, who had previously campaigned for salary hikes in his capacity as opposition chief whip in 2022, framed the revision as a necessary adjustment to align legislator compensation with current economic realities and inflationary pressures.
Odisha’s decision also underscores the growing wealth concentration among legislators. Reports indicate that 73 percent of the state’s 147 MLAs possess assets exceeding ₹1 crore, the highest in the history of the Odisha Assembly. The combination of high personal wealth and the substantial salary increase has prompted public criticism, with activists and civil society leaders questioning the optics of such a move.
Civil society activist Mahendra Parida condemned the hike, saying, “When education and health care face funding gaps, tripling MLA salaries sends the wrong signal. What is worrying is the legislators displaying remarkable unity for self-interest while remaining fractured on pressing public issues.” Similarly, political analyst Satya Prakash Dash observed that Odisha’s steep escalation far outpaces Karnataka’s 100 percent increase or Madhya Pradesh’s proposed 50 percent hike, warning that other states may follow suit, potentially exacerbating fiscal pressures on state budgets.
The Odisha government has defended the increase, citing the stagnation of pay scales since 2017, inflation, and recommendations from the Assembly’s advisory committee. Parliamentary Affairs Minister Mukesh Mahaling emphasized the need to maintain competitiveness with other states, arguing that inadequate compensation could hinder legislators from effectively fulfilling their duties. The bills’ provisions for automatic increments and pension adjustments were presented as measures to ensure long-term stability and alignment with economic realities.
In practical terms, the salary hike brings Odisha’s legislators in line with high-cost living adjustments and reflects a broader trend across India, where states periodically revise compensation packages to attract and retain talent in the political sphere. However, the timing and magnitude of the revision have amplified debates over social equity, governance priorities, and the disconnect between political remuneration and public welfare.
The hike also includes provisions for cabinet ministers, who will now earn ₹3.62 lakh per month, slightly higher than their counterparts in Telangana (₹3–3.50 lakh) and significantly more than ministers in Delhi (₹3 lakh). These figures highlight Odisha’s ambition to position itself as a state offering competitive remuneration to its political leadership.
Public discourse on the matter has been sharply divided. While legislators and political insiders defend the move as necessary and overdue, civil society groups and activists have criticized the hike as excessive, particularly in a state where large sections of the population still face economic challenges. Concerns have also been raised about the potential ripple effect, as other states may feel compelled to follow Odisha’s lead, further straining state finances already challenged by social welfare commitments.
In conclusion, the Odisha Assembly’s 211 percent increase in MLA salaries and allowances represents a historic recalibration of political compensation, establishing the state as the highest-paying legislature in India. The decision has been widely supported within the political establishment but has sparked debates regarding fiscal prudence, social equity, and governance priorities. With Odisha legislators now earning among the highest salaries nationally, the move may set a precedent for other states, while also intensifying scrutiny over the balance between political remuneration and public welfare needs.
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