Kerala passes bill raising MLA pay to Rs 98,000, first revision since 2018

The Kerala Legislative Assembly on Thursday, October 29, 2026 passed a bill to raise the salaries and allowances of ministers and MLAs, the first revision since 2018, a day after the state cabinet chaired by Chief Minister V D Satheesan approved it. According to reports of the bill, an MLA's monthly pay rises from Rs 70,000 to Rs 98,000, and a minister's rises to about Rs 1.3 lakh. At the same meeting on October 28, the cabinet also raised housing assistance for Scheduled Caste and fisher families from Rs 4 lakh to Rs 6 lakh, and for Scheduled Tribe families from Rs 6 lakh to Rs 8 lakh.

Pay for legislators is decided by legislators themselves, which always makes revisions sensitive. Supporters say MLAs need adequate pay and allowances to run constituency offices, travel and meet the public, and that a revision after eight years reflects rising prices. Others question whether lawmakers should set their own pay at all. In Kerala, the minister in charge said the plan came out of talks with leaders across parties, and reports suggested it was expected to have broad support.

For citizens, the more direct change from the same cabinet meeting is the higher housing assistance. Under the state's housing schemes, poor families receive a fixed grant to build a home. Raising the amount from Rs 4 lakh to Rs 6 lakh for Scheduled Caste and fisher families, and from Rs 6 lakh to Rs 8 lakh for Scheduled Tribe families, means a larger part of the building cost is covered by the government. Fisher communities along the coast and tribal families in the hills are among those who rely on such grants.

The two decisions together show how a state budget balances its own running costs with welfare spending. The salary bill adds to the cost of running the government, while the housing increase is a direct transfer to poorer households. How quickly the higher grants reach families will depend on the departments that run the housing schemes and on the state's finances.

Short-term: Legislators' higher pay and allowances take effect once the law comes into force, and new housing grants for eligible families will be paid at the higher rates.

Long-term: The housing increase could help more Scheduled Caste, Scheduled Tribe and fisher families complete homes, while the salary revision sets the base for the next review of legislators' pay.

Who is affected: Kerala's MLAs and ministers, Scheduled Caste, Scheduled Tribe and fisher families applying for housing grants, and taxpayers who fund both.

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