Members of the Bundestag decided this year to forgo their usual statutory pay increase. Although the originally proposed increase was 4.2 percent-raising the monthly compensation from €11,833.47 to €12,330.48-all parliamentary factions voted in favor of the associated draft law on Friday, signaling that the increase would not take effect.
The current system, established by the Bundestag in 2014, mandates that member compensation be adjusted annually on July 1st based on the development of the nominal wage index. This compensation is benchmarked against the salaries of judges in a top federal court (pay group R 6). However, the current legislative proposal notes that special circumstances may merit deviations to ensure the suitability of the parliamentary compensation. In this case, the justification cited “the general, and additionally challenging economic situation due to the war in Iran, alongside the tense budget situation.”
Despite the fact that nominal wages in Germany rose by 4.2 percent in 2025 compared to the previous year, it was argued that providing support would place burdens on citizens during these difficult times. Therefore, it was deemed the “correct signal” for members of the Bundestag not to receive an increase this year exceptionally. Notably, the Left party had demanded a refusal of such increases for the entire legislative term, a demand that was rejected.
Regarding the actual payout mechanism, the intended increase of €497.01 would initially be disbursed in July, resulting in a payout of €12,330.48. However, this increase would be deducted from the current compensation of €11,833.47 in August, meaning the payout for that month would be €11,336.46. Starting in September, the compensation would revert to the previous amount of €11,833.47. The standard adjustment procedure is scheduled to resume on July 1, 2027.
The same temporary adjustments are being applied to the fictitious benchmark amounts for retirement compensation. For parliamentarians who belonged to the Bundestag on December 22, 1995, former members, and their surviving spouses, the fictitious benchmark amount for retirement compensation increases by 4.2 percent in July, from €10,117.47 to €10,542.40. However, it drops to €9,692.54 in August before returning to €10,117.47 starting in September. For the group whose claims and entitlements were established up to December 31, 2007, the fictitious benchmark amount increases by 4.2 percent in July, from €11,321.39 to €11,796.89. This amount then falls to €10,845.89 in August and returns to €11,321.39 from September onward. In both cases, the regular adjustment is scheduled to take place on July 1, 2027.
