The Salaries and Allowances of Ministers Act, 1952 (Act No. 58 of 1952) was enacted on 12th August 1952 to standardize the financial and administrative privileges of Ministers in India, including the Prime Minister, Cabinet Ministers, Ministers of State, and Deputy Ministers. The Act ensures transparency and uniformity in the remuneration and benefits provided to public officials, while preventing dual benefits and misuse of resources. Over the years, it has been amended to reflect changing economic conditions and administrative needs.

Residence (Section 4)
Ministers are entitled to a free furnished residence during their term and for one month post-tenure. Maintenance costs (including utilities, taxes, and staff quarters) are covered by the government.
For deceased Ministers: Their family retains the residence for one month rent-free and may extend for another month at prescribed rates.
Sumptuary Allowance (Section 5)
A discretionary allowance for official expenses, graded by rank:
Prime Minister: ₹3,000/month
Cabinet Ministers: ₹2,000/month
Ministers of State: ₹1,000/month
Deputy Ministers: ₹600/month
COVID-19 Amendment (2020): A 30% reduction for one year to address pandemic-related financial constraints.
1952: The Act replaced the 1947 Ordinance governing Ministers’ salaries post-independence.
1969 Amendment: Extended residence benefits for families of deceased Ministers.
1985 Amendment: Aligned salaries with MP rates and introduced tax exemptions for official residences.
2000 Amendment: Revised sumptuary allowances to reflect inflation.
2020 Amendment: Temporarily reduced allowances by 30% during the COVID-19 pandemic.
The Act balances dignity of office with fiscal responsibility by:
Ensuring Fair Compensation: Competitive salaries and allowances attract qualified leaders.
Preventing Exploitation: Anti-dual benefit clauses curb misuse of public funds.
Adapting to Crises: The 2020 reduction demonstrated responsiveness to national emergencies.
Transparency: Parliamentary oversight of rule-making ensures accountability.