MLAs and MLCs decide their own salaries directly in an ad hoc way.

Their salaries and allowances must be fixed through a proper law passed by the State Legislature, not through informal decisions.

Without a specific law, state legislators get no salary at all.

Article 195 provides a fallback: if no new law exists, they are still entitled to salaries and allowances at the rates applicable to the corresponding pre-Constitution provincial assembly.

The Constitution of India

Article 195

Salaries and allowances of members

Members of the Legislative Assembly and the Legislative Council of a State shall be entitled to receive such salaries and allowances as may from time to time be determined, by the Legislature of the State by law and, until provision in that respect is so made, salaries and allowances at such rates and upon such conditions as were immediately before the commencement of this Constitution applicable in the case of members of the Legislative Assembly of the corresponding Province.§

Why this exists

The framers wanted elected representatives to be paid a defined salary so they could serve without needing independent wealth, supporting broader democratic participation. At the same time, since each state would need time to pass its own law fixing pay scales, the Constitution provided a fallback: continue with whatever the old provincial legislatures paid, ensuring no gap in payment while state legislatures organized themselves.

Common misconceptions

Myth: MLAs and MLCs decide their own salaries directly in an ad hoc way.
Fact: Their salaries and allowances must be fixed through a proper law passed by the State Legislature, not through informal decisions.
Myth: Without a specific law, state legislators get no salary at all.
Fact: Article 195 provides a fallback: if no new law exists, they are still entitled to salaries and allowances at the rates applicable to the corresponding pre-Constitution provincial assembly.