Vote on the Increase of Bundestag Allowances: Know What This Means for MPs' Pocket Money
Rise in Allowed Allowances: Its Implications for Members
Want to know how much money German parliamentarians rake in and why they can decide on pay hikes themselves? Here's what you need to know!
MPs of the Bundestag are among the highest-paid individuals in the country with the infamous "Member's Allowance," often referred to as the perk. Decisions regarding allowance increases are often met with disdain. In response, an automatic adjustment mechanism, similar to the pension system, was introduced years ago. Yet, this mechanism requires renewal after each federal election for the new legislative period and faces criticism.
Just how much cash do they make?
As of now, Bundestag members receive 11,227.20 euros per month. This sum is subject to taxation. In addition, there's a tax-free monthly allowance of 5,349.58 euros for expenses incurred while exercising their mandate, such as office rent, materials, transportation, lodging, and accommodation expenses. The Bundestag also covers expenses for the Berlin office (including materials and phone bills for employees) up to a maximum of 12,000 euros per year. MPs can travel by train for free and have their domestic flight costs reimbursed if related to their role in parliament.
The Anatomy of Allowances
The German constitution asserts that members should receive a "reasonable" allowance that guarantees their independence. This rule is implemented by the Members Act. In the landmark "Allowance Judgment" of 1975, the Federal Constitutional Court ruled that the allowance should be "appropriate to the importance of the office, taking into account the responsibility and burden involved and the rank of the office in the constitutional order." Keep in mind that this topic is always a hot button issue: if allowances are too low, there's a fear of increased susceptibility to bribery attempts, while excessively high allowances trigger criticism.
Why MPs call the shots on their paychecks?
This tradition can be traced back to the Allowance Judgment of the Constitutional Court. The court explicitly required members to decide on allowance matters themselves and in public. According to Bundestag.de, the court stated back then, "In a parliamentary democracy, it cannot be avoided that the parliament decides in its own affairs when it comes to setting the amount and determining the financial regulations associated with the status of a member."
The Advent of Automatic Adjustments
This system was established in 2014 by the Grand Coalition on the advice of an expert commission. The head of this commission, the former Federal Minister of Justice Edzard Schmidt-Jortzig of the FDP, had referred to the constant public outcry that took place with every allowance increase. "There was then talk of politicians as 'greedy' and of 'self-service' by parliamentarians." As a result, there has been a political desire for some time to automate adjustments in some way.
How the Automatic Adjustment Mechanism Functions
Similar to pension systems, if the average wages in the country increase by a certain percentage in a year, parliamentary allowances will increase accordingly the following year. Each newly elected Bundestag must vote on whether to maintain this procedure for the legislative period. This decision is due again, and it appears there is a majority in favor. According to the Left party, this mechanism will result in an increase of around 600 euros in parliamentary allowances by July 1st.
Crisis in Confidence: Views from Both Sides
The SPD and Union support the automatic system. According to Union leader Jens Spahn of the CDU, "This is a good, fact-based approach to a very political and sometimes emotional question." In difficult times, when citizens have less in wages and salaries, this has also led to corresponding reductions. In fact, parliamentary allowances did decrease slightly in 2021 due to the COVID-19 pandemic.
However, criticism comes from the AfD and the Left, both of which demand a suspension of the automatic adjustment. Left leader Heidi Reichinnek remarked in the Politico podcast "Berlin Playbook" that she was appalled that the Bundestag was planning the second-highest increase in parliamentary allowances in history and announced that she would donate more of her money.
- German Bundestag
- Politician Salary
- Elections
In alignment with the "Anatomy of Allowances," the German constitution mandates that Bundestag members decide on allowance matters themselves, an aspect rooted in the Allowance Judgment of 1975. On the other hand, the Left party and AfD have opposed the automatic adjustment mechanism for parliamentary allowances, with Left leader Heidi Reichinnek publically announcing her intent to donate more of her money in response to the planned increase.
The Bundestag's focus on vocational training can also be seen in its effort to enhance community policy, as the allowance increases are intended to provide MPs with the financial independence necessary to administer their roles effectively. However, politics surrounding the general-news topic of allowance adjustments are complex, with varying opinions on the fairness and necessity of the automatic adjustment mechanism in light of the country's economic conditions.
