Definition and significance of parliamentary compensation
Die Parliamentary compensation refers to the financial remuneration received by members of legislative bodies – in particular members of the German Bundestag and the state parliaments – for carrying out their mandate. These payments do not constitute traditional remuneration for work performed in the context of an employment relationship; rather, they serve to offset the professional and economic disadvantages incurred as a result of the mandate and to ensure the independence and effective functioning of parliamentarians.
Legal basis of parliamentary compensation
Constitutional provisions
The basis for parliamentary compensation is found in the Basic Law for the Federal Republic of Germany. According to Article 48, paragraph 3, sentence 1 of the Basic Law, members of parliament “are entitled to adequate compensation.” The objective is to ensure the free exercise of the mandate and independent parliamentary work by offsetting economic dependencies and existential risks arising from the mandate.
Statutory provisions
Members of the Bundestag Act (Bundestag)
For members of the German Bundestag, the Members of the Bundestag Act (AbgG) regulates the amount and structure of the compensation. The key provisions include:
- § 11 AbgG: Entitlement to a monthly compensation (parliamentary allowance).
- § 12 AbgG: Additional benefits, such as expense allowances.
- § 13 AbgG: Entitlement to retirement compensation and survivors’ benefits.
- §§ 27-28 AbgG: Transparency and disclosure obligations regarding possible secondary income.
State parliaments have also enacted comparable state laws regarding compensation for their members.
European and international aspects
Members of the European Parliament also receive a compensation, which is largely standardized across Europe through the “Statute for Members of the European Parliament.” Here as well, the aim is to strengthen independence.
Structure and components of the compensation
Parliamentary compensation (“diets”)
The core benefit is a monthly payment, commonly referred to as “diets.” The amount is regularly adjusted, is aligned with real wage developments, and is intended to ensure financial independence.
Assessment
The compensation is determined by resolution of the Bundestag (§ 11 AbgG). Adjustments are made regularly, usually taking into account the level of other public salaries, such as federal judges’ salaries. Particular emphasis is placed on transparent and comprehensible adjustment mechanisms.
Expense allowance
In addition, members receive a monthly tax-free expense allowance (§ 12 AbgG) to cover costs related to their mandate, such as for second residences, office expenses, travel, and communication. The specific amount and evidence requirements are regulated by law.
Retirement compensation and survivors’ benefits
After the end of the mandate, there may be an entitlement to retirement compensation under certain conditions (§§ 19-27 AbgG). The benefits take into account the duration and scope of parliamentary membership and are intended to ensure the social security of former members. In addition, there are provisions for survivors’ benefits.
Benefits in kind and further benefits
For certain activities, benefits in kind (such as BahnCards, technical equipment) or reimbursement of travel expenses are granted. These are earmarked and may be used exclusively for mandate-related purposes.
Tax treatment
The monthly compensation is generally subject to income tax. The expense allowance is tax-free, provided it is used in accordance with statutory requirements. Retirement compensation is taxed according to the recipient’s tax status. Secondary income from other activities may be subject to additional taxation.
Transparency and disclosure obligations
Members of parliament are required to disclose and publish certain secondary incomes as well as shareholdings and donations (§§ 27-28 AbgG). These transparency rules serve to ensure trust in the integrity of parliament and to allow scrutiny of potential conflicts of interest.
Restrictions and incompatibilities
The exercise of the mandate and the entitlement to compensation are subject to certain restrictions: In certain cases, public office holders cannot simultaneously be members of the Bundestag or state parliament. In addition, double financing from different public offices is prevented.
Criticism, case law and reform debates
The amount and adjustment of compensation is regularly the subject of political and public debate. Points of contention particularly include the setting of compensation by parliamentarians themselves and the tax privileges of certain allowances. The Federal Constitutional Court has repeatedly emphasized the constitutional duty to ensure the independence of the mandate and has demanded appropriateness and transparency of the regulations.
International comparisons
A comparison with other parliamentary systems shows significant differences with regard to the amount, structure, and secondary incomes of parliamentary compensation. The German compensation system is particularly designed to safeguard independence and transparency.
Summary
Parliamentary compensation is a key element in ensuring the effective functioning of a democratic parliament. Legal foundations and provisions serve to protect independence, financial security, and transparency in parliamentary work. Continuous reforms and a broad social debate accompany the development and practical implementation of compensation regulations.
Frequently Asked Questions
By what legal process is the compensation of parliamentarians determined?
In Germany, compensation for parliamentarians is regulated by the Members of the Bundestag Act (AbgG). This law stipulates that members receive financial compensation that does not constitute a salary but is intended to secure the independence of their mandate. The determination and adjustment of remuneration is by resolution of the Bundestag. For the Bundestag, the amount is generally set according to § 11 AbgG based on the salary of a federal judge at the Federal Court of Justice (salary group R 6). The Bundestag is obliged to regularly review whether the compensation remains appropriate and can make adjustments based on federal statistics regarding general income developments. Any change must be adopted and published as law. In addition, the procedure is subject to the requirement of transparency; i.e., all decisions are publicly accessible and comprehensible.
Are there legal requirements regarding the amount of compensation?
Yes, the amount of parliamentary compensation is set by law and is aligned with comparable public offices. According to § 11 AbgG, compensation must not overlook the level of responsibility or the country’s economic situation. It should prevent the emergence of economic dependency, but must also not be excessively high. The Federal Constitutional Court has repeatedly emphasized that setting compensation must comply with the principle of mandate freedom and the principle of adequate remuneration. The compensation rules are also subject to the principle of equal treatment and must not create special privileges that are not objectively justified. The amount is regularly reviewed in an international context and with regard to the taxpayer burden.
What legal control mechanisms exist regarding compensation?
Oversight of parliamentary compensation is exercised, on the one hand, by the public, as all regulations and adjustments must be published. On the other hand, the Bundestag itself is legally obliged to approve any changes in compensation within an ordinary legislative process. The Federal Constitutional Court may also be called upon, especially if there are doubts regarding compliance with the Basic Law (e.g., concerning the principle of equality or the independence of the mandate). In addition, the Federal Court of Auditors reviews the management of compensation payments, particularly in the area of publicly funded expenditures and expense allowances.
How are parliamentarians’ secondary incomes dealt with legally?
From a legal perspective, secondary incomes for members of parliament are permitted, but they are subject to strict disclosure requirements under the Members of the Bundestag Act (§ 44a AbgG) and the rules of conduct of the Bundestag. Income from secondary activities must be published in staggered categories to ensure transparency to the public and to reveal conflicts of interest. There is generally no ban on certain activities or cap on the amount, unless the activity is directly professional or commercial in relation to the parliamentary mandate and could impair its independence. Violations of disclosure requirements are sanctioned under the internal rules of the Bundestag.
Are parliamentarians’ compensations subject to taxation?
According to § 22 No. 4 of the Income Tax Act (EStG), parliamentary compensation is fully subject to income tax. The compensation counts as other income and must be declared in the income tax return. There are no special tax privileges or benefits. Expenses directly related to the exercise of the mandate can be claimed as income-related expenses. In addition, there are so-called expense allowances provided for certain expenditures, which are treated differently for tax purposes (partly tax-free if they correspond to actual expenses and are properly documented).
What legal differences exist between the compensation of Bundestag and state parliament members?
While the rules regarding state parliament members’ compensation are often based on the federal model, there are significant differences because each federal state autonomously regulates compensation law in line with its own constitution and state parliamentary law. The amount, composition, and adjustment procedures for compensation, as well as any special rules for pensions and secondary employment, can therefore differ from state to state. Where constitutional principles such as equality, freedom of mandate, and adequate remuneration are concerned, the case law of the Federal Constitutional Court is binding on state parliaments as well.
What legal remedies are available in the event of disputes over compensation?
In cases of disputes, for example regarding the legality of compensation rules or their application in individual cases (e.g., deductions due to breaches of duty), affected parliamentarians may appeal to the administrative courts. Furthermore, in matters of fundamental significance or in case of doubts about constitutionality, there is the option to file a constitutional complaint with the Federal Constitutional Court. Internal committees of the respective parliament, such as the Council of Elders or special disciplinary committees, can also be involved in clarification processes, but these do not replace regular legal recourse.
