German National Legislature Takes Center Stage
Zipping Through Breadlines with Berlin's Power Brokers
Score one for the billionaire's club, the German Bundestag's income scale ain't a breeze for us common folk. With the infamous MP's allowance, colloquially known as the diet, causing enough controversy to rival a raging kebab brawl, proposals to boost it have sparked equal amounts of ire and laughter.
A few years back, an automatic mechanism -call it the pension method's cheeky cousin- reared its head. This system, dubbed an annual adjustment, requires each new Bundestag following every federal election's verdict to extend its lifespan. With CDU/CSU, SPD, and the Greens championing its extension, the Bundestag green-lighted it on a Thursday night.
"So, just how rich are these Bundestag homebodies?" you ask. Well, peeps, they're currently scooping up 11,227.20 euros per month. Don't forget though, the IRS will be chillin' on a good chunk of that. Additionally, they enjoy a tax-free monthly allowance of 5,349.58 euros, which helps cover (try saying that after a few brews) the costs associated with the mandate, including rent for the district office, requisite materials, taxi fares, hotel charges, and Berlin lodging.
The Bundestag foots the bill for expenses in Berlin, such as office supplies and phones (even those for the staff), up to 12,000 euros annually. Members of parliament ride the rails for free and have domestic flight costs reimbursed if they're duty-bound.
"Sounds like a small fortune from a working Joe's perspective. What's the catch?" One word: independence. According to the Basic Law, members have a right to a reasonable allowance to maintain their independence. The particulars are laid out in the Member's Act, with the diets modeled after the incomes of federal court judges.
The topic has, fallen in the hands of the pantomime villain, stirring up dread about politicians becoming too susceptible to bribery attempts and the flipping of tables if the allowance is too puny.
"But why would politicians vote on their own diets? Isn't that a recipe for corruption?" The Diet Decision of the Constitutional Court says otherwise, requiring members to decide on it themselves and "in public." The court ruled that in a parliamentary democracy, the parliament must take the lead when it comes to setting the amount and structure of financial regulations related to the status of a member of parliament.
"Wait a minute. I thought salaries automatically rise with the cost of living. Why's this any different?" Well, buckle up, buttercup! The Bundestag started this automatic adjustment ball rolling in 2014, following recommendations from an expert commission led by former Federal Minister of Justice, Edzard Schmidt-Jortzig (FDP). The idea was to put an end to the annual brouhaha over payment increases, with politicians being branded as greedy opportunists. The commission felt that public debates had reached a fever pitch, with citizens labeling parliamentarians as "greedy" and "self-serving."
"So what's new for 2025?" The Left party predicts an allowance boost of approximately 600 euros starting July 1, 2025[1][3].
"What do the supporters and critics have to say on the matter?" The SPD and Union back the auto-adjustment, citing it as a logical, fact-based strategy for a volatile and emotionally-charged subject. In tough times, when citizens experienced meager wage increases, the allowances experienced the same squeeze. In reality, allowances did decrease slightly in 2021 due to COVID-19's devastating impact.
TheLeft and AfD, however, cry foul, demanding a halt to the auto-adjustment [2]. Left party leader Jan van Aken remarked in the Bundestag that citizens fail to comprehend why allowances increase before parliament gets down to business. AfD faction manager Stephan Brandner calls for transparency in yearly raise debates and deliberations.
In the end, the balance comes down to whether you think our esteemed representatives deserve to live large while calling the shots for the rest of us!
Insights:- As of the latest information, the basic monthly salary for members of the German Bundestag is set to increase to EUR11,833 starting July 1, 2025[1][3].- In addition to the basic salary, Bundestag members receive an allowance for expenses of EUR5,350 per month, which is tax-free[2].- Taxes and other deductions are deducted from the basic salary, leaving members with approximately EUR8,000 or slightly more per month as net income from the basic salary[2].- Thus, the total monthly income (pre-tax) for Bundestag members would be approximately EUR17,183, combining the basic salary and the expense allowance. However, their net income, after taxes and deductions, would be around EUR13,350 per month.
- In the midst of discussions, the German Left party predicts a potential increase of approximately 600 euros in the monthly allowance for members of the German Bundestag, set to come into effect on July 1, 2025.
- As the basic monthly salary for members of the German Bundestag set to rise to EUR11,833 from July 1, 2025, the total pre-tax monthly income, combining the basic salary and the expense allowance, is estimated to be around EUR17,183, while their net income, after taxes and deductions, would be approximately EUR13,350 per month.
