Understanding Remuneration

In exchange for their service, elected officials are compensated through comprehensive remuneration packages outlined in a country’s laws and regulations. Formal benefits and allowances typically encompass the total compensation proactively bestowed upon representatives, including wages, categorized spending allowances, and myriad benefits that may also extend to family. Those benefits sometimes track with basic provisions afforded to public employees, such as healthcare; others are unique or modified due to the elected officials’ status. At the same time, formal restrictions on elected officials typically include limits on earned income, other compensation, or elected officials’ (or their families’) conduct due to their status as representatives. Such restrictions often are imposed to ensure that the officials’ representation is not influenced by loyalties to anyone other than their constituents, including for personal gain.

While such benefits and restrictions tend to be explicit in the law, they are not always listed in one central place. Many countries have formal codes of conduct that outline at least some of these rights and responsibilities (New Zealand and Sri Lanka, for example). In other countries, these provisions are codified in disparate rules, regulations, or parts of the law (such as Nepal, which has no central code of conduct for MPs). Each studied country also sets remuneration in different ways. In New Zealand, the Remuneration Authority, on an annual basis, consults specific criteria to determine MPs’ remuneration.²⁷ In Ecuador, the Legislative Administration Council (El Consejo de Administración Legislativa, or CAL) establishes remuneration.²⁸ In Nepal, the government may update MPs’ remuneration “in a manner not to be to the disadvantage of the Office-bearers or Members” via “a notice in the Nepal Gazette.”²⁹ In Sri Lanka, Parliament itself establishes remuneration for all MPs, “by law or resolution” after the start of its term.³⁰

In any case, remuneration policies are often open to reinterpretation by individual legislatures or administrations. That flexibility enables elected officials to undertake reforms reflective of the country’s current state of affairs (e.g., elected officials taking pay cuts in line with austerity measures or national crises). However, these gray areas also invite opportunity for corruption. As has been discussed, uncertainty about the perceived and real benefits elected officials receive can drive down trust in those officials.

Table 1 summarizes the remuneration provisions identified through analysis of the four cases. These 16 categories of remuneration provided to and restrictions placed on elected officials take many styles. The remainder of this section discusses each category and identifies more specific sub-categories of salaries, benefits, and restrictions identified through this research. When all countries provide the same benefits, they are labelled “Standard” in Table 1. When two to three countries provide a benefit, it is considered “Typical.” When a provision is available in only one country under investigation, it is considered “Rare.” Table 1 also summarizes key points of variation.

Salary and Allowances

This category of benefits encompasses direct payments to elected officials as part of their compensation, including wages, emoluments, per diems (i.e., fixed daily allowances to cover travel expenses), pensions, and severances. The structure of these payments varies significantly from country to country and is sometimes supplemented by additional allowances tied to activities.

In each country, MPs receive a base salary paid on a regular schedule, which can scale up based on one’s rank. Table 2 provides an overview of recent base salaries for an ordinary MP (e.g., not a speaker or holder of another senior position), with calculations in U.S. dollars as of April 2024. In Ecuador, all Assembly Members receive 12 monthly payments as well as two additional payments annually.³¹ In New Zealand, all MPs are paid “fortnightly in arrears by direct credit to a nominated bank account.”32 The Remuneration Authority determines New Zealand MPs’ salaries based on several factors: the office (e.g., speaker, whip); the electorate, meaning which mechanism of the mixed-member proportional system led to that individual serving in office; or “any other considerations that the Remuneration Authority may determine.”³³ The prime minister, speaker, and MPs generally also receive a separate allowance for basic expenses.³⁴ Sri Lankan MPs of higher rank, such as the speaker and deputy speaker, earn a higher base salary, paid monthly, than regular MPs.³⁵ Monthly remuneration for office-bearers and members in Nepal is scaled by position as well.³⁶

Additional allowances are also available in most places based on an elected official’s office and duties. In New Zealand, the prime minister, speaker, and MPs receive supplementary allowances in addition to their base pay meant to cover out-of-pocket expenses for related parliamentary business, such as donations, raffle tickets, passport photos, and meals.³⁷ Nepalese MPs receive a salary monthly plus an additional daily allowance when they attend meetings “of any House or any Committee or the joint meeting of both Houses” and during scheduled recesses.³⁸ Sri Lankan MPs receive a sitting allowance for each session of Parliament they attend and a committee allowance for attending committee meetings on non-sitting days in addition to their monthly base salaries. As of 2019, the sitting allowance was 2,500 rupees per day.³⁹ In contrast, remuneration in Ecuador is standard for all Assembly Members and the amounts are available publicly via an information portal, website, or other appropriate means.⁴⁰

In some countries, the economic situation or other crises also may factor into annual salary rates. For instance, the base salary for Assembly Members in Ecuador was reduced following the 2015 economic crisis, and then reduced again to align with policies of austerity. Similarly, in New Zealand, MPs took a 10 percent pay cut to show solidarity with those affected by the coronavirus pandemic in 2020.42 This is one way government bodies can be responsive to and reflective of the pressures faced by constituents during crises.⁴³

Paid Leave

This category of benefits includes vacation time, personal time, parental leave, sick leave, bereavement leave, and other types of paid time off extended to elected officials.

Elected officials tend to receive paid leave in amounts similar to other public employees in their country. In New Zealand, all public employees have public holidays off⁴⁴ with and a minimum of 10 days of sick leave, and they are entitled to additional types of leave as outlined in the law and determined by the Ministry of Business, Innovation and Employment.⁴⁵ In Nepal, all employees are entitled to 12 days of paid sick leave per year, adjusted proportionally⁴⁶ In Ecuador, employment contracts can specify sick leave following either the Organic Law on Public Service or the Labor Code, which specify different minimum sick leave limits.⁴⁷ In Sri Lanka, after public or private sector employees have held a position for two years, they are entitled to seven days of casual or sick leave; in their first year of employment, they are granted four to 14 days of fully remunerated annual leave depending on the month when the contract starts.⁴⁸

Parental leave varies most significantly from country to country and based on the conditions of the family. In New Zealand, after the birth or adoption of a child, the primary caregiver is granted 26 weeks of paid parental leave, in addition to special paid leave for pregnant women “for reasons associated with the pregnancy.”⁴⁹ In Sri Lanka, a new mother may receive continuous leave for up to 84 work days (21 weeks) after birth at full pay with options to extend at reduced pay rates for an additional 84 days; the minimum maternity leave is 4 weeks.⁵⁰ As of September 2023, adoptive mothers in Sri Lanka are permitted up to four months of leave after adoption; adoptive fathers are permitted three working days of paternity leave.51 In Ecuador, new mothers are entitled to 12 weeks of maternity leave, with additional time granted for multiple births and caesarean section deliveries; new fathers receive a 10-day paternity leave after the birth of their child, with additional time for caesarean section deliveries (15 days in total).⁵² In Nepal, women working in government receive a minimum of 98 days of leave with pay, which they can take before or after delivery; men with pregnant wives can take 15 days of paid leave. Additional leave is provided for “complicated surgery … per the opinion of the specialist doctor due to morbidity.”⁵³ Parental leave, like sick leave, is often in line with the leave schedules for public employees in the country generally and not unique for elected officials.

Travel and Transportation

This category of benefits includes such expenses as flights, taxis, rental cars, parking, tolls, and fuel, among other travel-related expenditures. In every country studied, elected officials received some kind of travel and transportation benefit.

Cars, drivers, or fuel allowances are provided to high-ranking elected officials in most countries. All MPs in New Zealand are permitted to use a personal car and submit requests for reimbursement or to use a taxi or rental car when on domestic official travel.⁵⁴ The speaker, deputy speaker, leader of the opposition, and leader of any political party with more than 25 members in Parliament are entitled to chauffeur-driven cars. In Nepal, every high-ranking office-bearer⁵⁵ is provided an automobile and fuel and does not need “to submit bills and vouchers of fuel and mobile received by them.”⁵⁶ In Sri Lanka, until recently, all MPs received a tax-exempt permit (valued at approximately Rs. 20 million, or USD 66,350) to import a personal vehicle. This scheme is currently on hold, citing the economic crisis.⁵⁷ MPs, however, still receive a driver allowance if they are not provided a driver directly from the government; they also receive a fuel allowance, which is calculated based on the distance from Parliament to each MP’s district and “the approved market price of one litre of diesel on the first day of every month.”⁵⁸ In contrast, Assembly Members in Ecuador are not generally provided with cars or transportation within the capital, Quito.

Other types of transit costs are also commonly provided, especially for MPs who do not receive a driver or car allowance. In Ecuador, while there is no car allowance, Assembly Members with permanent residences outside Quito are entitled to ⁵² domestic round-trip airfares per year (one per week). Thirteen of those flights may be to destinations other than a legislator’s primary residence.⁵⁹ In Nepal, MPs receive 1000 rupees (USD 7.50) for each day they must travel to participate in meetings in any House of Parliament, committee, or joint meeting of both houses, as well as a few days before and after; MPs are also entitled to a double travel allowance when travelling and returning to their permanent residences on the same day.⁶⁰ Thus, some kind of transportation benefit is standard, but the specific provisions vary significantly within and across countries.

Accommodations

This category of benefits can include housing provisions or rent and utilities allowances for elected officials. Rent allowances are often provided to officials who live beyond a certain distance from Parliament and cannot reasonably commute to legislative sessions from their primary residences.

Housing units are sometimes maintained for MPs’ use. For instance, in Sri Lanka, the Members’ Services Office maintains the Madiwela Housing Complex for rent by eligible MPs based outside of Colombo. The Members’ Services Office is tasked with maintaining those housing units and providing services to the official residence of the speaker.⁶¹ In New Zealand, the Office of Ministerial Services may allocate an official residence to any minister whose home base is “outside the Wellington commuting area.”⁶² The government will cover costs associated with moving from the minister’s current residence to this official residence and “maintenance and support services commensurate with the status of the official residence.”⁶³ Since February 2022, New Zealand MPs who cannot use the accommodations due to unforeseen and unavoidable circumstances can receive temporary funds for a second accommodation – for instance, if they are facing a security threat.

Other accommodation arrangements operate based on direct compensation or reimbursement. For instance, in Nepal, the government “shall bear the whole tariff of electricity and water supply installed with the residence of the Speaker and the Chairperson” in addition to arrangements for housing. If government housing cannot be provided directly for any reason, MPs will receive monthly stipends to cover housing costs, including installation of electricity and water supply and reimbursement for a certain number of telephone calls per month.⁶⁴ In Ecuador, Assembly Members whose place of residence is located more than 60 miles from Quito receive compensation for a rental home.⁶⁵ Some kind of accommodation provision is standard.

Security

This category of benefits includes security services provided to elected officials for their personal safety.

Governments typically provide blanket security services to all elected officials. For instance, in New Zealand, the Intelligence and Security Agency provides any “public authority” with “protective security services, advice, and assistance.”⁶⁶ This includes personnel, information, and physical security, as well as advice about national security risks. In Sri Lanka, the Ministerial Security Division provides police protection to all MPs.⁶⁷ In Ecuador, the Legislative Escort of the National Police is charged with securing the legislative area, and thus the members, although no specific additional security is provided for Assembly Members.⁶⁸

Higher-ranking officials often receive additional security. The president of the Assembly in Ecuador has a police escort, for example. Likewise, in Sri Lanka, the Sri Lankan Army oversees a special unit dedicated to protecting the prime minister.⁶⁹ In Nepal, the number of security personnel assigned to parliamentary leadership is similarly based on rank.⁷⁰ Security provisions thus vary widely from those afforded to all public employees and special accommodations.

Office expenses

This category of benefits often includes office space, furniture, and other supplies an elected official might need to fully perform their work duties.

It is typical for a parliament to provide office space for its members; sometimes, it may also provide electronic devices or funds for office expenses. In New Zealand, for example, MPs receive furnished office space and can use dedicated funds to purchase computers, stationary supplies, and other office equipment.⁷¹ Similarly, in Nepal, all office-bearers are legally required to have office space equipped with furniture, typewriters, and telephones in the Parliament Secretariat.⁷²

Not all office spaces suit elected officials, who often desire the flexibility to work elsewhere, especially after the COVID-19 pandemic. For example, in Ecuador, while there is a dedicated building with offices for Assembly Members, internet connectivity issues reportedly disincentivize members from working there regularly. Sri Lankan MPs receive Rs. 100,000 (USD 331.75) per month to maintain offices of their choosing.⁷³ These provisions are specific for MPs as opposed to other public employees.

Communications and technology

Closely related to office expenses, this category of benefits typically provides elected officials with personal or professional information and communication technology (ICT), including telephones or other electronics (e.g., laptops, tablets). Elected officials in every country studied receive some type of ICT benefits.

Similar to office supplies, ICT benefits can be issued in the form of hardware or via a separate fund for acquiring such equipment. In New Zealand, an ICT Allocation, Members’ Communication Appropriation, and Non-staff Allocation all help fund MPs’ ICT costs. The funds may cover hardware (e.g., smartphones, computers) or services (e.g., cellphone usage charges, printing), with service levels varying depending on location and the type of equipment in use.⁷⁴ In Nepal, the government pays the deposit and other expenses incurred when installing a telephone line in buildings assigned to parliamentarians for their use as offices.75 In Ecuador, the government pays for elected officials’ internet plans and provides a cellphone and tablet for institutional use.76 In Sri Lanka, all MPs receive a telephone allowance of Rs. 50,000 (USD 165.88) per month for a landline and mobile device.77 These provisions, like office expenses, are uniquely defined for MPs versus other public employees.

Medical provisions

This category of benefits includes coverage for medical treatments, provision of medical insurance, or direct payments for medical services in countries without universal healthcare coverage. In countries with universal healthcare, elected officials may be eligible for supplemental medical care or coverage.

In some countries, elected officials receive the same medical care as other public sector employees. In Ecuador, by virtue of being in an officially employed position, Assembly Members are eligible for free health insurance and access to specific healthcare providers; they do not receive additional benefits beyond those available to other public sector employees.⁷⁸ In Sri Lanka, MPs must use the compulsory group insurance. MPs receive Rs. 6,000 (USD 19.91) for annual medical expenses at Sri Jayawardenepura General Hospital and Rs. 5,000 (USD 16.59) for eyeglasses every three years; they also may incur up to Rs. 200,000 (USD 663.50)-worth of inpatient medical treatment annually.⁷⁹

In some countries with universal healthcare, such as New Zealand, MPs are afforded additional benefits. Their Employee Assistance Programme is meant to provide MPs and other Parliamentary Service employees with “short-term support for personal or work-related issues that are impacting you and your work life.”⁸⁰ Specifically, New Zealand MPs are eligible to use a confidential counseling and advice service for up to four fully funded sessions. In other countries, elected officials receive free or discounted medical services. In Nepal, for instance, senior doctors provide free services to MPs, and the government covers any hospital stays or emergency hospital treatment for MPs, as recommended by the senior doctors.⁸¹

Tax breaks⁸²

This category of benefits typically refers to any tax breaks that elected officials may receive on income or other taxable expenses. Not all countries offer these benefits, and the impact varies greatly in countries that do offer tax breaks.

Some of the tax breaks are income-related. For example, in Ecuador, the 13th and 14th salary payments are not subject to taxes.⁸³ In Sri Lanka, taxes on the allowances that MPs receive are based on Advance Personal Income Tax Table 01, published by the Department of Inland Revenue.84 Beyond income, some benefits are exempt from taxes. In February 2023, the Sri Lankan Inland Revenue Department amended its instructions regarding non-cash benefits, significantly reducing the percentage of taxes that MPs pay on vehicles, fuel, accommodation, and communications allowances.⁸⁵

In other countries, elected officials have separate funds that are not subject to taxation, meant to compensate for expenses incurred during service. In New Zealand, for instance, in addition to their income (which is taxed like that of all public employees), MPs receive a basic tax-free expense allowance to reflect their “genuine expenses”; this is explicitly not considered remuneration under the Members’ Conditions of Service.⁸⁶

Staff selection and benefits

This category of benefits includes the ability to select, hire, and fire staff either directly hired or chosen from among a civil servant corps. Typically, these choices are based on expertise and personal preferences, but the elected officials do not usually need to justify their selections.

In practice in most countries, elected officials can select their staffers directly. Assembly Members in Ecuador are allowed to directly hire two advisors and two assistants as their personal staff.⁸⁷ Members in higher positions are allowed to hire additional advisors and assistants. Those advisors are, in theory, chosen for their substantive expertise and justified to the CAL, although staffers with personal ties to Assembly Members have reportedly been approved for positions that are outside their realm of expertise.⁸⁸ Similarly, in Sri Lanka, many MPs are known to employ their wives or relatives as their personal staff⁸⁹ despite the Code of Conduct for Members of Parliament stating that they must not expect any “financial … benefit or personal advantage for himself, [or] his family members.”⁹⁰

In other countries, staffers are hired by the government and merely managed by elected officials. For example, in New Zealand, support staff are employed by the Parliamentary Service and managed by MPs. Although the MPs are involved in the recruitment process, they cannot ask staffers to engage in political party work on their behalf. All MPs receive a staff funding allocation, the level of which depends on the MP’s position in Parliament.⁹¹

Additionally, in some countries, benefits extended to MPs are also extended to members of an MP’s staff. For instance, in Sri Lanka, each MP is paid a total of Rs. 10,000 (USD 33.18) per month for the traveling expenses of four personal staff. In Nepal, MPs are provided furniture and a pre-determined amount of money “for office expenses of the personal secretariat and guest reception.”⁹²

Familial benefits

This category captures benefits that are extended to the families of elected officials, such as tuition, travel, transportation, and security. The line between such familial benefits being written into law and being afforded informally often blurs.

Formally sanctioned familial benefits vary widely country to country. Some are financial. For instance, an MP in Sri Lanka may designate their pension to be payable to a surviving spouse and children after their death.⁹³ Other formal permissions are more functional. For instance, in New Zealand, family members may travel with MPs who are traveling for parliamentary purposes or ministerial business, and spouses of certain members of the parliamentary leadership (e.g., speaker, deputy speaker) may use chauffeur-driven cars for purposes related to parliamentary work on which those MPs are engaged.⁹⁴ Sri Lankan MPs and their families are entitled to use the 19-room Holiday Bungalow (“General’s House”) in Nuwara Eliya, which is maintained by the Members’ Services Office.⁹⁵ MPs’ spouses and certain children are also eligible to receive official diplomatic passports.⁹⁶

Some informal benefits often extend to elected officials’ families. Staff positions are sometimes offered to family members, who may or may not have area expertise related to the Assembly Member’s portfolio.⁹⁷ In Sri Lanka, where dynastic politics have been the norm since independence with a few families dominating politics, nepotism is rife as spoils, much like power, are kept in the family⁹⁸ and politicians’ children are given coveted diplomatic posts.⁹⁹ Nepotism among elected officials is reportedly widespread in Nepal as well.¹⁰⁰