Article 195

Article 195 of the Constitution of India provides the constitutional basis for determining the salaries and allowances of Members of the Legislative Assembly (MLAs) and Members of the Legislative Council (MLCs) in Indian states. This provision ensures that elected representatives receive adequate remuneration for their services, thereby supporting their independence, integrity, and ability to function effectively in the public interest.

Constitutional Framework and Objective

The purpose of Article 195 is to create a structured and legitimate mechanism for compensating members of State Legislatures. The provision ensures that legislators are not financially dependent on external influences, which could otherwise compromise their impartiality or effectiveness.
Article 195 states that:

• The salaries and allowances of members of a State Legislature are to be determined by the State Legislature itself through legislation.
• Until such laws are enacted, members are entitled to continue receiving remuneration at the rates in force immediately before the commencement of the Constitution.

This arrangement guarantees continuity and stability, ensuring that legislators are compensated even during periods when specific state laws are yet to be enacted.

Entitlement and Legislative Authority

Under Article 195, MLAs and MLCs are constitutionally entitled to receive salaries and allowances as prescribed by the State Legislature through an Act. This delegation of power enables each state to determine appropriate compensation based on its economic conditions, budgetary capacity, and governance requirements.
The legislative authority includes the power to:

• Fix the basic salary of members.
• Provide for allowances such as constituency allowances, daily allowances, travel and accommodation allowances, and conveyance benefits.
• Determine pension entitlements for former legislators.

This flexibility ensures that each state can periodically review and adjust the remuneration structure to reflect changing socio-economic conditions.

Historical Context and Continuity

The inclusion of Article 195 reflects the practices that existed under colonial and provincial governments prior to 1950, where legislators were paid honoraria or allowances for attending legislative sessions. By incorporating these practices into the Constitution, the framers ensured administrative continuity and provided a framework adaptable to independent India’s democratic and fiscal realities.
Initially, remuneration for state legislators was modest, reflecting limited legislative workloads and smaller public expectations. However, with the expansion of democratic participation and legislative responsibilities, the importance of fair and adequate compensation has increased significantly.

Interim and Transitional Provisions

The interim clause of Article 195 ensured that, until a new law was enacted by a State Legislature, members would continue to receive the remuneration applicable under pre-constitutional laws or rules. This clause prevented any administrative or financial gap in compensating legislators immediately after the adoption of the Constitution.
Over time, all states have enacted specific statutes governing legislative salaries and allowances, such as:

• The Karnataka Legislature Salaries, Pensions and Allowances Act
• The Maharashtra Legislative Members’ Salaries and Allowances Act
• The Tamil Nadu Payment of Salaries Act

These laws are regularly amended by the respective legislatures to revise pay structures in line with inflation and public expenditure policies.

Judicial Interpretations and Case Law

The judiciary has examined the scope and limitations of legislative powers under Article 195 in several landmark cases:

• K. K. Verma v. State of Maharashtra: The Court upheld the authority of the State Legislature to determine salaries and allowances, affirming that this power is a legitimate exercise of legislative competence.
• State of Karnataka v. Union of India: The Supreme Court discussed the implications of legislative autonomy in deciding members’ remuneration and held that such decisions, being legislative in nature, are not subject to executive interference unless found unconstitutional.

Judicial interpretation has thus reinforced the autonomy of State Legislatures in matters of financial entitlement while maintaining constitutional oversight to prevent misuse.

Related Constitutional Provisions

Article 195 must be viewed alongside other provisions that influence legislative compensation and financial discipline:

• Article 194: Protects the powers and privileges of the State Legislature and its members, indirectly supporting their functional independence.
• Article 202: Requires the presentation of the Annual Financial Statement (Budget), through which funds for legislative salaries and allowances are authorised.
• Article 187: Provides for the establishment of separate secretarial staff for each House of the Legislature, linking administrative and financial support systems.

Together, these provisions ensure that the Legislature functions with both operational and financial autonomy within constitutional limits.

State-Level Variations

Because Article 195 grants power to individual State Legislatures, remuneration structures vary across states. For example:

• States like Delhi, Maharashtra, and Karnataka have higher legislative salaries reflecting larger economic bases and cost of living.
• Smaller states such as Goa and Sikkim maintain relatively modest scales.

These differences reflect India’s federal diversity and the principle of financial decentralisation. States periodically review remuneration through legislative amendments, usually passed unanimously or with minimal opposition.

Legislative Procedure and Implementation

Salary and allowance bills are introduced in the State Legislature like any other ordinary bill. The process includes:

1. Introduction and discussion of the bill specifying salary amounts or revisions.
2. Debate and scrutiny by members to ensure fiscal prudence and fairness.
3. Passage by both Houses (if bicameral) followed by the Governor’s assent.

Once enacted, the law authorises the State Treasury to disburse salaries and allowances as part of the regular budgetary process.

Public Accountability and Transparency

The determination of legislators’ remuneration is subject to public and media scrutiny, given its direct link to taxpayers’ money. Transparency in this process reinforces public trust and political integrity. Some states have instituted mechanisms such as:

• Independent pay commissions for legislators.
• Public disclosure requirements regarding legislative expenditure.

Critics, however, argue that legislators should not determine their own salaries without an independent oversight mechanism, to avoid potential conflicts of interest.

Economic and Governance Implications

While salaries and allowances represent a small portion of a state’s overall budget, they carry significant symbolic and ethical implications. Adequate remuneration:

• Ensures financial independence of legislators, reducing susceptibility to corruption or external influence.
• Attracts qualified individuals to public service.
• Supports the efficient functioning of representative democracy.

However, excessive or frequent revisions in remuneration may raise public concerns about fiscal responsibility and equity, particularly in states facing economic challenges.

Contemporary Debates and Trends

In recent years, debates around legislative salaries have focused on index-linked pay adjustments, pension entitlements, and monetary transparency. Many states have introduced provisions for automatic periodic revisions, while others prefer legislative deliberation for each change.
Public discourse continues on balancing fair compensation with prudent fiscal management, reflecting the evolving nature of democratic accountability in India.

Importance in a Democratic Framework

Article 195 serves as an essential component of India’s constitutional and democratic structure, ensuring that state legislators receive due financial support while maintaining public confidence in their integrity. By granting each State Legislature the authority to determine its members’ remuneration, the Constitution strikes a balance between financial autonomy, legislative accountability, and responsible governance.