Odisha govt withdraws bills for MLAs' salary hike after backlash

Odisha government withdraws controversial Bills proposing steep salary hikes for MLAs and ministers following public criticism and political pressure

Amid mounting public criticism, the Odisha government withdrew four contentious Bills that proposed a steep increase in salaries, allowances, and pensions of legislators and top constitutional functionaries. The move came just before the Budget session of the Assembly was adjourned sine die on Tuesday midnight, five days ahead of its schedule.

 

The decision marked a dramatic U-turn by the government, which had earlier defended the revisions as long overdue. The session, which began on February 17, was scheduled to continue till April 8.

 

The four withdrawn legislations include the Odisha Legislative Assembly Members’ Salary, Allowances and Pension (Amendment) Bill, 2025, the Odisha Ministers’ Salaries and Allowances (Amendment) Bill, 2025, the Speaker’s Salary and Allowances (Amendment) Bill, 2025, and the Deputy Speaker’s Salary and Allowances (Amendment) Bill, 2025.

 

 

These Bills were passed unanimously on December 9, 2025, the last day of the winter session, and were awaiting the Governor’s assent. However, the proposals triggered widespread backlash across the state, forcing the government to reconsider its position.

 

Before the adjournment of the House at about 12.45 am, Parliamentary Affairs Minister Mukesh Mahaling formally moved notices for the withdrawal of the Bills, which were subsequently approved by the House without opposition.

 

The now-withdrawn Bills had proposed a three-fold increase in compensation, which would have made Odisha’s legislators among the highest paid in the country. The monthly salary and allowances of MLAs were set to rise from ₹1.11 lakh to ₹3.45 lakh. Their basic pay alone would have increased from ₹35,000 to around ₹90,000. Former legislators were to receive pensions of over ₹1.2 lakh per month.

 

The proposals also outlined substantial increases for ministers and key office-bearers. The Chief Minister’s monthly remuneration was pegged at ₹3.74 lakh, while the Deputy Chief Minister was to receive ₹3.68 lakh. Cabinet ministers, ministers of state, Speaker, Deputy Speaker, Leader of Opposition, and Government Chief Whip were all slated to receive between ₹3.56 lakh and ₹3.68 lakh per month.

 

The state government had initially justified the increase, arguing that it came after an eight-year gap and accounted for inflation and rising living costs. However, the 211 per cent increase sparked outrage among civil society groups, opposition parties, and the general public, who questioned both the timing and necessity of such a move.

 

The issue quickly evolved into a broader debate on political accountability and fiscal priorities, particularly in a state where large sections continue to face economic challenges.

 

The controversy gained further traction when Naveen Patnaik, leader of Opposition and president of the BJD, wrote to Chief Minister Mohan Charan Majhi a day after the Bills were passed, stating that he would voluntarily forgo the enhanced salary and allowances applicable to his post “for the welfare of the poor people of our state.”

 

Patnaik’s letter intensified public scrutiny and added moral pressure on the government. His stance found resonance among several legislators, including some from the ruling BJP, who privately and publicly urged reconsideration of the steep increase.

 

At the same time, there were voices that supported the revision. Senior BJP MLA Jaya Narayan Mishra had argued in favour of increasing legislators’ salaries, maintaining that elected representatives deserve adequate compensation to perform their duties effectively and maintain dignity in public life. He had reportedly pointed out that the existing pay structure was not commensurate with the responsibilities and public expectations placed on MLAs.

 

Faced with sustained backlash and the risk of political fallout, the government ultimately opted for a rollback. “The Bills were introduced in December last year and passed unanimously as not a single member opposed inside the Assembly. Later, we all had requested the Chief Minister to withdraw the Bills as per public opinion. Accordingly, the Bills were withdrawn,” Ashok Mohanty, BJP MLA from Pallahara, told mediapersons.