Following a long campaign, a common salary for all MEPs was finally agreed on, by all EU governments and by the European Parliament, to start immediately following this year’s election. Henceforward MEPs will be paid a common salary of € 7,665 a month (ca. €92,000) before tax.
Several common errors need to be corrected:
• The salary is expressed in euro, not in pounds and when agreed was approximately the same as the current UK MPs salary. It has apparently risen recently only because of the decline of the pound against the euro. If in future the euro depreciates against the pound, the salary in pounds will reduce.
• The salary will be taxed at EU rates, which rise to 45% at the margin, somewhat higher than current UK rates. Moreover, the British Government has decided that UK MEPs should pay the same tax as UK taxpayers, and will levy any additional tax required to bring them up to that level.
• In parallel with the introduction of the common salary, the travel expenses regime has been reformed, and as from July 2009 MEPs’ travel expenses will be reimbursed on the basis of receipts.
• The European Parliament has banned the practice, common in the House of Commons, of employing relatives as assistants. Family members already employed by MEPs will be able to continue until 2014, but no new contracts for relatives will be allowed from July 2009.
• Assistants in future will be employed as temporary officials of the institution, and the MEP will choose the person but will have no financial relationship with them.
• MEPs do not benefit from a Second Home allowance or “John Lewis list”. Instead they receive a per diem allowance, currently €298, which is intended to cover costs of accommodation, meals and local transport while in Brussels or Strasbourg.
• MEPs receive a flat-rate allowance of € 4200 per month to cover the cost of running an office in their constituency, including postage, stationery, telephones, computers, subscriptions, heat and light, and travel within the constituency and the Member State, roughly on a par with the allowances for MPs. Receipts are not required.
• MEPs do not receive the following other Westminster allowances: travel for the family to the place of work; free trips to parliaments in other European Member States.
• Pension fund: this is now closed to further members, and will gradually phase out as existing members pass away. Steps have been taken to avoid any need for additional funding.
• Transitional allowances are much the same as for Westminster MPs or if anything a little less generous.
Source: Simon Duffin, tel: 020 7227 4335