Section 20: Salary, Allowances and Term of Office
Section 20 protects the Board's independence in a simple, practical way: fixing that a Chairperson or Member's pay can't be cut after their appointment, and giving them a defined, renewable two-year term.
Quick summary
What Section 20 says
- Sub-section (1) — the salary, allowances and other terms and conditions of service of the Chairperson and other Members shall be as prescribed, and shall not be varied to their disadvantage after their appointment.
- Sub-section (2) — the Chairperson and other Members shall hold office for a term of two years, and shall be eligible for re-appointment.
Breaking it down
This is a compact but meaningful independence safeguard, common to many regulatory and adjudicatory bodies: financial security during the term, and a defined but renewable tenure.
The non-disadvantage rule is specifically about changes made after appointment. Sub-section (1) doesn't fix what the compensation must be (that's left to be prescribed) — it fixes that whatever terms a Member is appointed under can't later be worsened during their tenure. This is designed to prevent a government from pressuring a sitting Member through pay cuts.
Two years is a relatively short term compared to many statutory bodies, but the re-appointment eligibility softens that. Sub-section (2) doesn't cap the number of re-appointments, meaning a Member's total tenure could extend well beyond two years across multiple terms, subject to the appointment process being repeated.
Why this section matters
Regulators and adjudicators need some insulation from political or institutional pressure to function credibly. Section 20's non-disadvantage protection on pay is a specific, concrete mechanism for that, even though the term length itself is relatively short by comparative standards.
Real-world example
How the protection works in practice
Consider a Board Member appointed under prescribed terms setting a specific salary and allowance package.
- What sub-section (1) prevents — during that Member's term, those terms can't be reduced or worsened, even if, for instance, the government were unhappy with a particular Board decision.
- What it doesn't guarantee — the initial prescribed terms themselves aren't fixed by the Act — they're set by the Rules, and could differ for Members appointed at different times or under different notifications.
- At the end of a two-year term — under sub-section (2), the Member is eligible to be considered for re-appointment, rather than facing an automatic end to their tenure.
Who needs to care about this section
- Board Chairperson and Members themselves — this section defines their own compensation-protection and tenure terms.
- Anyone assessing the Board's institutional independence — the non-disadvantage rule and defined term are relevant structural features.
Common questions
Can the government reduce a sitting Board Member's salary?
How long does a Board Member serve?
Is there a limit on how many times someone can be re-appointed?
Related sections
Section 21 — Disqualifications for Appointment and Continuation as Chairperson and Members of Board
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Read Section 21Section 19 — Composition and Qualifications for Appointment
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