Keeping Up with the Times: Bundestag Approves Annual Adjustment of Parlimentary Allowances
Parliament opts to preserve automatic adjustment of allowances for taxpayers.
In a move that mirrors wage adjustments, the Bundestag has decided to keep the automatic increase of parliamentary allowances on the table for the current legislative period. Despite opposition from the AfD and The Left, the parliament pushed through the decision late in the evening. This regulation, implemented in 2014, ties the allowance adjustment to wage developments and the remuneration of the highest federal judges, making it transparent, fair, and fitting.
Stephan Brandner, the parliamentary business manager of the AfD faction, labeled the majority's approach as "shabby." On the other hand, CDU member Hendrik Hoppenstedt argued that the linkage between the adjustment and wage developments, as well as the orientation towards the remuneration of the highest federal judges, makes the regulation logical, just, and pertinent.
As with pensions, the parliamentary allowance, often referred to as the per diem, is revised yearly on July 1st to reflect changes in average wages, even if wages have decreased. It's worth noting that each newly elected Bundestag must vote on the continuation of this process until the next election. Currently, parliamentarians receive 11,227.20 euros per month, a taxable amount, and also enjoy a tax-free monthly expense allowance of 5,349.58 euros.
The Nominallohnindex, which reflects the average wages of employees in Germany, is the guiding factor behind this automatic adjustment. This index ensures that parliamentary salaries are in line with broader economic trends.
Since 2016, the salaries of Bundestag members have been linked to the Nominallohnindex, offering a systematic and data-driven approach to salary adjustments. This mechanism has helped depoliticize the process, making it more fact-based and rational. The rationale behind this system is to maintain a balance between parliamentary salaries and the general wage growth in Germany, reflecting economic realities.
In June 2025, the most recent adjustment resulted in a salary increase of over EUR600, bringing the monthly remuneration to EUR11,833. This increase was due to a 5.4% rise in the Nominallohnindex in 2023. The mechanism is designed to be responsive to economic changes, ensuring a balance between parliamentary compensation and the wider economic context.
Support for the automatic adjustment mechanism comes from major political parties like The SPD, Greens, and Union, who see it as a pragmatic approach to managing parliamentary salaries. However, not all parties agree, with the AfD and The Left opposing the measure due to concerns about the timing and fairness of the increases.
[1] Source: ntv.de, dpa
Sources:1. Automatic adjustment mechanism maintains parity between parliamentary salaries and economic trends. (2023). Retrieved from ntv.de, dpa. [Online]. Available: https://www.ntv.de/politik/deutschland/der-automatische-anpassung-der-amtsentgelte-des-bundestags-stimmt-der-mehrheit-zu-article22920610.html
- Given the approach to wage adjustments in the community policy, the ongoing automatic increase of parliamentary allowances can be seen as a logical extension, mirroring economic trends and achieving a balance between parliamentary salaries and general wage growth.
- With the annual adjustment of parliamentary allowances tied to the Nominallohnindex, a key aspect of vocational training in the field of economics, the regulation emphasizes a fact-based, systematic, and data-driven approach, demonstrating the importance of this skill in parliamentary decision-making.
