Congress favoured a meaningful and reasonable hike in view of the rise in cost of living and keeping in view the overall situation, including increase of salaries in states like Delhi and Karnataka, sources said.
A decision on the issue would be taken by the government and a bill will have to be introduced for the purpose, they added.
The legislators in Telangana now get Rs 95,000 per month if they have an official residential quarter. Those who do not have quarters get Rs 1,20,000 per month.
Ex-MLAs now get Rs 15,000 if they have served for one term.
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The Telangana government said last month that it was examining the issue of increasing the salaries of MLAs and MLCs in view of their "grossly inadequate" pay structure.
Several MLAs and MLCs have submitted representations in this regard to Chief Minister K Chandrasekhar Rao and also Legislature Secretary in recent times, a release from Rao's office said on February 9 and the issue was discussed at a meeting held by the Chief Minister.
The Telangana legislators now get Rs 95,000 per month and their salary bill coupled with those having Cabinet rank, would be to the tune of Rs 14.94 crore per annum, it said.
Observing that MLAs and MLCs have to meet a lot of "political and non-political expenses" every month, it said the present salary structure is "grossly inadequate" to meet the actual expenses.
There is an estimate that about Rs 3 lakh is spent every month by the MLAs and MLCs to meet expenses, including paying for meals of their staff, providing financial assistance to different persons and also to attend various programmes in the constituency, it said.