Chancellor’s salary: how much does a chancellor earn??

Salary Federal Chancellor: How much earns a chancellor?

Were or are at home in the Chancellery: Angela Merkel and successor Olaf Scholz are among the few heads of government in the history of the Federal Republic of Germany

The Federal Chancellor is always under power. After all, the strings of government run together with him. But what does the chancellor earn at all? We look at the various salaries.

The Federal Chancellor holds the probably most important office in Germany. Although he is not considered the head of state of the Federal Republic, the formation and direction of the government is in his hands. This means that he ultimately stands for the political course.

As a rule, the Federal Chancellor resides in the Federal Chancellery in Berlin for at least four years – that’s how long a legislative period lasts. In theory, however, he can always be reelected at this rate; no upper limit has been set here in the constitution. Angela Merkel and Helmut Kohl of the CDU, for example, each served 16 years in office; the latter had even hoped to continue in government, but lost the 1998 Bundestag election to Gerhard Schroder of the SPD .

In the Basic Law, the Chancellor is granted a guideline competence, specifically it says: "The Chancellor determines the guidelines of policy and bears responsibility for it." However, he also has to act according to the collegial principle, because it also says: "The federal government decides on disagreements between federal ministers ."Ultimately, however, disagreements within the cabinet always fall back on the head of government.

Salary of the Federal Chancellor: Remuneration based on grade B11

This raises the question of how much the highly respected post, which is also associated with immense duties, earns. The salary of the Federal Chancellor is laid down in the Federal Ministers Act. From the beginning of the calendar month in which he takes up office until the end of the month in which he leaves office, he is entitled to an official salary of one and a third "of the basic salary of grade B11, including allowances generally granted in addition to the basic salary".

In addition, there is a local allowance in the amount of "one and a third of the local allowance due in grade B11" and an annual, tax-free service allowance, which is set at 24.000 DM – that is, about 12.270 Euro. If it is not possible for him to move his household to the seat of the Federal Government – i.e. to Berlin – he also receives compensation of DM 3,600 (about 1,840 euros) a year for the duration of his stay at his previous place of residence.

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The payment of official emoluments is made monthly in advance in each case. In addition, they are granted only once for the same period, and in each case the higher remuneration. Important for classification: since April 2021, the basic salary for grade B11 is 14.808.25 euros, it will presumably rise in April 2022.

Earnings as chancellor: local allowance not applicable if official residence is used

The chancellor is entitled to an official residence with furnishings and equipment. If he falls back on it, however, the local allowance is omitted. As with any member of the federal government, he or she also receives compensation for any necessary relocation, as well as per diem allowances and compensation for travel expenses when serving in an official capacity away from the seat of the federal government.

The Scientific Service of the German Bundestag calculated for the year 2020 that the then Chancellor Merkel received a monthly official salary of 21.262.47 euros gross collected. Since she was also a member of the Bundestag, she was also entitled to a parliamentary allowance and a lump-sum expense allowance. According to the Representatives Act, these are "based on the remuneration of a judge at a supreme court of the Federation".

The monthly parliamentary allowance is therefore 10.083.47 euros. It is paid annually on 1. July adjusted. However, the sum is reduced by half due to income from another official relationship – in this case the remuneration as chancellor. In the case of the lump-sum expense allowance, a quarter is omitted if a company car of the federal government is available for exclusive use. The Scientific Service of the German Bundestag states the following for Merkel for 2020: 5041.74 euros per month in parliamentary allowance and 3373.22 euros per month in lump-sum expense allowance.

Thus come all in all in the month between 30.000 and 40.000 euros in salary for a federal chancellor together. However, the Basic Law also states that no sideline employment is permitted: "The Federal Chancellor and Federal Ministers may not hold any other salaried office, trade or profession and may not belong to the management or, without the consent of the Bundestag, to the supervisory board of a profit-making enterprise."

When looking at the chancellor’s salary, it should be borne in mind that the job involves a lot of stress and irregular working hours. Flights around the world are not uncommon, the head of government must be available virtually at all times, there are no classic weekends.

After the chancellor’s term: up to two years’ transitional allowance – from 60. Pension possible on her 75th birthday

After leaving office, the chancellor is entitled to a transitional allowance for up to two years. In the first three months, this is made up of the full amount of the official salary and the cost-of-living allowance, after which half of this remuneration continues to flow. The transitional allowance is also paid monthly in advance. According to the Taxpayers’ Association, federal ministers are also entitled to a transitional allowance of around 73 after just one day in office.980 euros to. It is offset against private income from the second month onwards, but can rise to just under 221.940 euros rise.

It is reduced by the pension, which amounts to 4560 euros per month for at least four years in office. Each additional year as a member of the government increases the amount by 393 euros per month. The maximum amount is estimated by the Federation of Taxpayers at 11.796 euros stated. Former federal ministers, including the chancellor, may be entitled to a pension from the age of 60. Birthday.

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