Article 106

Article 106 of the Constitution of India provides the constitutional basis for determining the salaries and allowances of Members of Parliament (MPs). It empowers Parliament to regulate these payments by law, ensuring that elected representatives are fairly compensated for their public service and legislative responsibilities. The provision reflects the constitutional intent to maintain financial independence and dignity of Parliament while upholding transparency and accountability in public expenditure.

Constitutional Framework

Article 106, placed in Part V, Chapter II (The Parliament), states:

“Members of either House of Parliament shall be entitled to receive such salaries and allowances as may from time to time be determined by Parliament by law, and, until provision in that respect is so made, allowances at such rates and upon such conditions as were immediately before the commencement of this Constitution applicable to members of the Constituent Assembly of the Dominion of India shall be applicable to members of Parliament.”

This provision ensures continuity from the pre-Constitution period and entrusts Parliament with the power to decide the remuneration structure for its members through legislative measures.

Key Provisions

1. Authority to Determine Salaries and Allowances:
   • Parliament has the exclusive power to determine and revise the salaries and allowances of its members through law.
   • This includes monthly salary, daily allowances, travel concessions, constituency allowances, and pension benefits.
2. Interim Arrangement:
   • Until Parliament enacted a specific law, the members were entitled to receive allowances as applicable to members of the Constituent Assembly prior to 1950.
   • This ensured a smooth transition from the Assembly system to the newly established parliamentary framework.
3. Legislative Flexibility:
   • Parliament may revise the remuneration periodically to reflect economic changes, inflation, and the nature of responsibilities undertaken by MPs.

By vesting this power directly in Parliament, Article 106 reinforces the principle that the legislature must remain financially autonomous and self-regulating.

Legislative Framework

To operationalise Article 106, Parliament enacted the Salary, Allowances and Pension of Members of Parliament Act, 1954. This law, along with its subsequent amendments, governs the financial entitlements of MPs.
Key features of this legislative framework include:

• Salary: Fixed monthly remuneration to meet regular expenses.
• Daily Allowance: Paid for each day the member attends Parliament or committee meetings.
• Travel and Conveyance: Entitlements for travel between the constituency and the national capital.
• Constituency Allowance: To support public interaction and service within the member’s constituency.
• Pension: Introduced later to provide post-tenure benefits to former members.

The Act has been amended several times, allowing Parliament to periodically review salaries and allowances, often in line with recommendations from committees or public finance considerations.

Historical Context

The inclusion of Article 106 reflects the continuity of parliamentary practices from the British and Constituent Assembly traditions. During the framing of the Constitution, the provision was designed to:

• Ensure that members were adequately compensated to perform their legislative duties effectively.
• Prevent dependence on the executive for financial support, thus maintaining legislative independence.
• Recognise the shift from the Constituent Assembly of the Dominion of India to a fully functioning Parliament in the Republic of India.

It was also considered essential to provide MPs with financial stability, enabling individuals from diverse social and economic backgrounds to participate in national governance.

Objectives and Significance

The principal objectives of Article 106 are:

1. Ensuring Fair Compensation:To remunerate Members of Parliament adequately for the time, effort, and expenses associated with their legislative duties.
2. Preserving Legislative Independence:To prevent financial dependence on the executive branch by vesting control of MPs’ remuneration in Parliament itself.
3. Encouraging Public Participation:To make legislative service accessible to all qualified citizens, irrespective of their economic background.
4. Maintaining Accountability:To ensure transparency and public scrutiny in determining and revising MPs’ compensation through formal legislation.

By achieving these objectives, Article 106 reinforces the principle of representative democracy and equitable participation in governance.

Judicial Perspective

Although Article 106 has rarely been the subject of direct litigation, courts have recognised its constitutional importance in ensuring the financial autonomy of the legislature. Judicial pronouncements related to financial transparency and accountability of elected representatives have indirectly affirmed Parliament’s power under this Article.

• The judiciary has held that remuneration to MPs must align with constitutional principles of fairness, transparency, and public trust.
• Courts have also emphasised that, while MPs can legislate on their own pay, they remain accountable to the public, ensuring that such decisions are reasonable and justified.

Thus, judicial interpretation has consistently upheld the legislative prerogative under Article 106 while reinforcing the need for integrity and accountability.

Distinction from Other Constitutional Provisions

• Article 97: Determines the salaries and allowances of the Speaker, Deputy Speaker, Chairman, and Deputy Chairman of Parliament.
• Article 125: Relates to the salaries of judges of the Supreme Court.
• Article 221: Covers the salaries of judges of the High Courts.

In contrast, Article 106 specifically focuses on ordinary Members of Parliament, ensuring that their compensation is distinct from and independently determined by legislative process.

Transparency and Public Accountability

The determination of MPs’ salaries and allowances under Article 106 has often been a topic of public debate and scrutiny. Critics argue that allowing MPs to decide their own remuneration could lead to conflicts of interest.
To address this concern, Parliament has:

• Introduced independent committees and periodic reviews to assess and recommend salary adjustments.
• Ensured that all changes are made through public legislation, allowing for transparency and media oversight.
• Considered linking salary revisions to objective parameters, such as per capita income or inflation rates.

These measures help balance legislative autonomy with public accountability.

Current Application and Revisions

Under the Salary, Allowances and Pension of Members of Parliament Act, 1954, salaries and benefits of MPs are periodically revised to reflect changing economic conditions.

• Revisions are usually implemented through amendments passed by Parliament.
• In recent years, there have been discussions about establishing a permanent mechanism or independent commission to review MPs’ salaries periodically, ensuring fairness and transparency.

MPs’ allowances today cover not just salary but also costs related to constituency service, travel, office maintenance, and staff support, reflecting the expanded scope of modern legislative responsibilities.

Importance in Parliamentary Democracy

Article 106 is essential to the functioning of a free and self-sufficient legislature. Its broader significance includes:

• Protecting Parliamentary Independence: MPs are not financially dependent on the executive for carrying out legislative duties.
• Promoting Efficiency: Enables representatives to focus on governance without financial insecurity.
• Encouraging Representation: Ensures participation from individuals across socioeconomic backgrounds.
• Ensuring Transparency: Legislative control through law-making allows for public debate and scrutiny of compensation structures.

By providing for fair remuneration, Article 106 contributes to the overall credibility and effectiveness of Parliament as an institution of governance.

Conclusion

Article 106 of the Indian Constitution ensures that Members of Parliament are adequately and lawfully compensated for their legislative work through a transparent, parliamentary process. It preserves financial independence, institutional integrity, and public accountability by empowering Parliament itself to determine the salaries and allowances of its members.