Annual Salary of Members of Parliament in the UK

Parliamentary representatives from both old and newly elected MPs will receive their earnings after the July 4 general election, as outlined below.

, and ASMedia

2025 September 20 . 4:35 PM

2 min read

Salary of a Member of Parliament in the UK

Annual Salary of Members of Parliament in the UK

In the political landscape of the United Kingdom, Members of Parliament (MPs) play a crucial role in shaping the future of the nation. But what about their remuneration and retirement benefits? Let's delve into the details.

MPs' careers are not as secure as one might think. They need to reapply for their job at least once every five years, a precarious aspect of the job that adds an element of unpredictability.

The basic annual salary for an MP, effective from 1 April 2024, stands at £91,346. This figure is set by The Independent Parliamentary Standards Authority (IPSA).

However, for those holding key positions such as a Secretary of State or a Minister, the salary can increase significantly. An MP in such a role can expect an additional £67,505. Moreover, chairing a parliamentary committee boosts a politician's salary by £18,309.

Travel costs, office expenses, employing staff, and living expenses in London or the constituency are covered through MPs' expenses. They also receive a winding up payment worth four months' salary if they lose their seat, provided they have been an MP for two consecutive years.

The pension scheme for MPs is more generous than most private sector defined contribution schemes. It is a defined benefit pension scheme, which provides a retirement income linked to their final earnings and the number of years of service. However, one of the pernicious aspects of this scheme is that it detaches MPs from the pensions available to their constituents, as they make the rules that govern those pensions.

The annual increase in MP salaries, currently at 5.5%, has been controversial due to current inflation at 2% and the average UK salary being around £35,000. This has sparked debates about the fairness of MP's wages, with figures like John O'Connell, chief executive of the TaxPayers' Alliance, questioning the matter.

On the other hand, Laith Khalaf, head of investment analysis at AJ Bell, states that the MPs' pension scheme is funded, meaning there is a pool of assets to provide benefits for retired members.

Interestingly, MPs in Germany receive an annual basic salary of approximately €120,154.68, which is more than the UK's MP salary. This figure, known as the parliamentary basic salary (Abgeordnetenentschädigung), is periodically adjusted, though exact current figures may vary slightly due to recent tariff changes and legislation updates.

In the recent general election, the Labour Party formed the government, gaining more than 200 seats, while the Conservatives lost 250 seats. Despite these changes, the future of MP salaries and pensions remains a topic of ongoing discussion and debate.