New pay structure notified as debt-ridden state sees hike for elected representatives
Sunil Chadha
SHIMLA: Just days before Diwali, the Himachal Pradesh government has implemented a salary hike for the Chief Minister, Deputy Chief Minister, Speaker, Deputy Speaker and all MLAs.
The revised pay structure, which was approved by the Governor and officially notified in the gazette, increases the Chief Minister’s salary to Rs 3.40 lakh per month, while MLAs will now earn Rs 2.97 lakh per month.
The changes were made through the Himachal Pradesh Legislative Assembly (Allowances and Pension of Members) Amendment Bill, 2025, which had been passed earlier during the budget session. This is the first salary hike for state legislators since 2016, when the Virbhadra Singh government last approved an increase.
Under the new structure, MLAs’ basic pay has gone up from Rs 55,000 to Rs 85,000. Office allowance has tripled from Rs 30,000 to Rs 90,000. Similarly, the CM’s hospitality allowance has jumped from Rs 95,000 to Rs 1.5 lakh. Cabinet ministers and the Speaker will now draw around Rs 3.30 lakh per month, combining salary and perks.
Rising salaries amid mounting state debt
The announcement comes at a time when Himachal Pradesh is struggling under a debt burden nearing Rs 1 lakh crore. Despite the financial strain, the government has moved ahead with boosting pay for elected officials, raising questions among critics about the state’s priorities.
Notably, this increase is part of a larger set of pre-Diwali announcements aimed at spreading festive cheer. While public representatives enjoy a generous salary revision, the state government has also rolled out several schemes for employees, pensioners and contract workers, seemingly in an effort to appease multiple sections before the festival season.
Bonuses for employees, relief for outsourced workers
Alongside the hike for MLAs, Chief Minister Sukhvinder Singh Sukhu recently announced a 3% dearness allowance (DA) hike for government employees and pensioners, effective from April 1, 2025. The arrears from April to September will also be credited before Diwali.
Additionally, over 43,000 contractual and outsourced workers, including 18,925 anganwadi workers, will receive their increased honorarium payments before October 20. A new policy has also been introduced to compensate outsourced employees who suffer injuries while on duty.
Contractors, too, have something to celebrate. The state has cleared pending payments up to Rs 10 lakh per contractor, ensuring financial relief before the festive season. The finance department has been instructed to process these payments promptly.
