Enhanced Allowance Implications for Legislators
Stay informed on the upcoming vote regarding the automatic hike in allowances for members of Germany's Bundestag. Here's a break-down of key details surrounding the allowances, including the nitty-gritty of the cash members take home and why they have a say in the allowance increase process.
How Much Moolah Do Bundestag Members Make?
Currently, members of the prestigious Bundestag receive 11,227.20 euros monthly. This dough is subject to taxation. On top of that, there’s a tax-exempt, monthly expense allowance of 5,349.58 euros to help cover expenses incurred while executing their position, like the rent for the district office, materials, cab rides, hotel costs, or lodging in Berlin.
The Bundestag also reimburses office expenses in Berlin, as well as phone expenses for their office and staff—up to a maximum of 12,000 euros annually. Members can zip around Germany for free via train, and domestic flight costs will be reimbursed as long as they're job-related.
What Factors Determine Allowances?
According to Germany’s Basic Law, members of parliament are entitled to an appropriate allowance that ensures their independence. This policy is further regulated by the Members Act.
As per the so-called allowance judgment of the Federal Constitutional Court in 1975, the allowance needs to be proportional to the importance of the office, taking into account the burden and responsibility associated with the position, as well as its rank in the constitutional order.
The allowance issue has always been a sensitive one: if allowances are too low, there could be concerns about susceptibility to bribery attempts, while excessive allowances face criticism.
Who Decides on the Bundestag's Allowance?
The Bundestag members themselves decide on their allowances. This dates back to the allowance judgment of the Constitutional Court, which required decisions to be made in public. The court stated, "In a parliamentary democracy, it cannot be avoided that the parliament decides in its own affairs when it comes to setting the amount and the further design of the financial regulations associated with the status of a member."
Why the Annual Automatic Adjustment?
The annual automatic adjustment was instituted in 2014 by the grand coalition, based on a recommendation from an expert commission. The head of this commission, the former Federal Minister of Justice Edzard Schmidt-Jortzig of the FDP, sought to end the recurring heated debates around allowance increases by automating adjustments.
"In the past, there were talks of 'greedy politicians' and of 'self-service' by parliamentarians," he remarked. There has been a political desire for some time to make allowance adjustments more straightforward.
The automatic adjustment works similarly to pension payments: it considers the increase in average wages in the country in a given year and adjusts the Bundestag allowances accordingly the following year. However, each new Bundestag must vote on whether to keep the process in place for the legislative period, and this decision is forthcoming. According to the Left party, the mechanism will lead to an allowance increase of around 600 euros starting on July 1st.
Voices of Supporters and Critics
The SPD and Union back the automatism, with Union faction leader Jens Spahn (CDU) praising it as a reasonable, evidence-based approach to what can sometimes be an emotional and sensitive issue. He noted that decreases in allowances have occurred during difficult times, like the pandemic in 2021.
Criticism comes from the AfD and the Left, both advocating for a suspension of the automatic adjustment mechanism. Left faction leader Heidi Reichinnek expressed her dismay at the Bundestag's plans for the second-highest allowance increase in history and announced her intention to donate additional funds.
Stay tuned to this space for further updates on the Bundestag's allowance decision.
- In addition to staying informed about the upcoming vote on Bundestag allowances, it's crucial to understand the community policy on vocational training for members, as they decide on their own allowances, following the principles set by policy-and-legislation and general-news.
- The ongoing debate surrounding Bundestag allowances highlights the intersection between politics and vocational training, as the general-news unfolds the latest on adjustments to allowances, including the automatic hike, which is regulated by policy-and-legislation and influenced by factors such as the economy and the workload of parliamentarians.
