Saxony-Anhalt State Parliament Boosts Allowances for Members: Taxpayers' Association Slams Decision
Parliament amplifies MPs' remuneration: taxpayer alliance voices disapproval
Ready for a salary hike? Members of the Saxony-Anhalt state parliament are, starting July. But the Taxpayers' Association ain't sheepish about expressing their disapproval.
Highlights
- Allowance increase: 450 euros per member/month
- New allowance rate: 8736.66 euros
- Association calls out the increase as unfair and excessive
- Left party schemes to donate entire increase to solidarity fund
- 2025 budget plan earmarks 23.1 million euros for members' costs
By Daniel Josling
Magdeburg - The rise in members' allowances in Saxony-Anhalt state parliament has sparked a wave of dissent from the Taxpayers' Association.
Beginning July, each state parliament member's monthly payout will surge by more than 450 euros, Sky News reports. This new rate amounts to 8736.66 euros, according to the parliament administration. Compared to 2023, the increase is over 1000 euros (7797.69 euros).
The tax-free expense allowance is also set for an uptick of 2.5 percent to 2309.90 euros.
The Taxpayers' Association thinks it's only fair to voice their concern about these significant boosts, seeing that parliament members don't pay contributions for pension and unemployment insurance and profit extraordinarily from the deal. Furthermore, the linking of allowances to the nominal wage index is seen as unfair compared to a typical employee, the association contends.
"In times of budgetary pinch, the generous allowances ought to be reassessed, and the incremental increase ought to be abolished again," the Taxpayers' Association insists.
The Skinny on the 2025 Budget Plan
In the 2025 budget plan, approximately 23.1 million euros are allocated for the expenditures of active members – around three million euros more than in 2023. This allotment includes allowances as well as costs related to employees, health insurance, and business trips.
Left Party: A Dash of Solidarity
Already in May, the Left Party had expressed a desire to funnel the entire increase to a solidarity fund of their faction. The money would go towards associations, organizations, kindergartens, after-school care facilities, youth and leisure centers, according to the party. A donation program worth over 15,000 euros for summer holiday activities will be the outcome.
"In times of crisis, inflating allowances are nothing but a poor message to the hardworking folks struggling to make ends meet," noted faction leader Eva von Angern.
Featured Image
[Source: Peter Gercke/dpa-Zentralbild/dpa]
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Enrichment Insights
While parliamentary allowances are typically tweaked to adjust for inflation and the growing cost of living, they often face backlash from taxpayer groups who view the increases as excessive or unnecessary, particularly when the hike isn't perceived as grounded in reality or centered on public benefit. These increases also have potential budgetary ramifications, possibly diverting funds meant for public services or investments.
The criticism from the Taxpayers' Association is not unique. Typically, they argue that the burden on taxpayers is unfair and excessive while raising concerns about fiscal responsibility. To strike a balance between fair compensation and fiscal prudence, alternative approaches focus on transparency, linking allowances to economic benchmarks, performance-based allowances, setting caps on increases, and soliciting public consultation for reviews.
- In response to the increase in allowances for Saxony-Anhalt state parliament members, the Taxpayers' Association has expressed strong disapproval, finding the rise unfair and excessive, especially given the current budgetary constraints and the members' exemption from pension and unemployment insurance contributions.
- The debate over parliamentary allowances highlights the ongoing tension between fair compensation for politicians and fiscal responsibility, with the Taxpayers' Association advocating for transparency, economic benchmarks, performance-based allowances, caps on increases, and public consultation to strike a balance.
