Taxes and politicians: Remuneration is partially tax-free
Created: 09/21/2022, 12:00 p.m
By: Carina Blumenroth
Income is taxed, the pension is currently taxed twice - this applies to citizens.
But what about MPs?
Electricity, gas or living costs - everything is becoming more expensive.
Many citizens are faced with additional costs on the one hand and their own income on the other, which does not seem to be enough.
Relief packages are intended to absorb some of the costs - many citizens are currently receiving the 300 euro flat rate for energy costs, for example.
This is paid by the main employer together with the monthly salary.
But how much money do MPs actually get and how do they have to pay taxes?
Find out below.
Members of Parliament do not have to pay tax on some remuneration.
© Imago
Politicians' salaries are partially tax-free
Various distinctions have to be made with regard to compensation and remuneration for Members of Parliament.
Depending on whether they are members of the state or federal parliament or members of the European Parliament, the lump sums, allowances and salaries that the politicians receive also vary.
For example, Members of Parliament receive an expense allowance for attending meetings and conferences.
These are tax-exempt under federal and state law.
These funds are tax-free for members of the Bundestag and state parliament:
Compensation for attending meetings and conferences.
Flat-rate expense allowance (tax-free flat-rate fee): This is used to exercise the mandate, for example to cover the costs of the constituency office and trips in the constituency.
This is adjusted to the cost of living annually on January 1st.
Currently, EUR 4,583.39 per month is tax-free.
MEPs do not pay unemployment or pension insurance contributions.
The pension provision corresponds to the pension law model for civil servants.
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Taxes and politicians: This is what politicians receive
There are currently 736 members of parliament in the Bundestag, and there are over 1,800 in the sixteen state parliaments.
Around 100 members of parliament from Germany sit in the European Parliament.
All of these are professional politicians – their MP salaries are taxed.
This falls under "other income" in the income tax return.
Specifically, this approach applies to the so-called basic compensation.
Politicians can deduct income-related expenses from this amount – this can be the case, for example, for trips to work.
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In this context, the term "diets" often comes up - which could be described as the basic salary of MEPs.
The German Bundestag states that this salary is based on the level of remuneration for ordinary judges of the Supreme Court.
Increases are decided every two years by the Bundestag.
A few years ago, the development of MPs' allowances was linked to the development of wages in the country.
On July 1, 2022, the allowances for members of the Bundestag were around 10,323.29 euros gross per month.
The diets have increased by around 300 euros compared to the previous year.
Members' additional income is taxed
Some members of the Bundestag also have ancillary income in addition to their political activities.
These can be, for example, on supervisory boards or in the function as consultants to companies.
This additional income must be reported and taxed.
Members of the Bundestag are also entitled to 12,000 euros in benefits in kind every year.
With this you can, for example, spend office material, laptops, IT costs for the constituency office.
Members of the state parliament and members of the European Parliament deserve that
According to the
Vereinigte Lohnsteuerhilfe eV
, the salaries of members of the state parliament vary significantly from state to state.
In NRW, for example, members of parliament receive up to 9,300 euros, in the city state of Hamburg it is around 3,000 euros.
The information is gross and sometimes there are additional flat rates.
In the European Parliament, MEPs receive around 7,316.68 euros after EU tax and insurance deductions.
These are then taxed in the respective country.
There are also costs for expenses and a flat-rate fee per meeting day in Brussels.
