Economic Privileges Granted to Members of the Diet: Institutional Basis and Transformation

In a recent article, I mentioned that the salaries of members of the Diet are high by global standards, and that the level of their compensation relative to average salaries is also high among OECD countries.

Therefore, in this article, I would like to examine the salaries and various allowances granted to members of the Diet, look at their historical changes, and consider what we can do to maintain appropriate levels for these annual allowances (salaries) and benefits in the future.

1. Background of Institutional Design and Legal Basis

Article 49 of the Constitution of Japan stipulates that “Members of both Houses shall receive appropriate annual payment from the national treasury, as provided by law.” as follows.

This was intended to reform the pre-war system of unpaid, volunteer-like legislators and to ensure a system where members of the Diet could focus on their duties while maintaining a livelihood. It is said that one of the origins of the current system was the provision of a “special daily allowance” during the sessions of the Imperial Diet to address issues such as accommodation costs faced by members elected from local districts when working in Tokyo.

Its legal basis lies in Article 35 of the Diet Act and the **Act on Annual Payment, Travel Expenses and Allowances, etc. of Members of the Diet (hereinafter referred to as the “Annual Payment Act”), enacted in 1947.

“Annual payment” has a character intermediate between remuneration and expenses, and while there is debate over whether it is compensation for duties performed or reimbursement, since the 1960s it has been positioned as “remuneration to guarantee the livelihood of members.”

2. Historical Changes in the System and Recent Developments

Inception of the System (1947)

Through post-war Diet reforms, low-cost “communication expenses” and “miscellaneous stay expenses” were institutionalized, which were later integrated into the “Document, Correspondence, Transportation, and Accommodation Allowance.”

Establishment of Annual Payment Amounts (1950s–1960s)

Following recommendations from an advisory council, the annual payment amount was set with the intent of “guaranteeing a livelihood appropriate for a member.”

Recent Revisions to the System

• While more generous preferential systems such as the “Mutual Aid Pension for Diet Members” existed, they were abolished in 2006 following public criticism.

• In 2018, with the increase in the number of House of Councillors seats, a revision was made to reduce the annual payment for House of Councillors members by 77,000 yen per month.

• During the COVID-19 pandemic in 2021, a measure to reduce annual payments by 20% was extended until October due to the impact of the virus.

• Revisions related to year-end allowances were made, and in December 2024, a bill to keep the level of year-end allowances unchanged was passed.

• The “Document, Correspondence, Transportation, and Accommodation Allowance,” often referred to as the “second salary,” was renamed the “Research, Study, Public Relations, and Accommodation Allowance.” (Details in the next section)

3. Forms of Allowances and Comparison with Corporate Systems: The Uniqueness of Diet Members

Comparing the allowances of Diet members with those of general companies highlights their unique nature.

[Note]

• The Speaker of each House receives 2.17 million yen per month, and the Vice-Speaker receives 1,584,000 yen. In contrast, it is rare for corporate executives to earn over 1 million yen per month.

• The amount of the year-end allowance is calculated by multiplying the monthly salary by a rate determined by the Speakers of both Houses, and then applying a rate similar to that for special service government employees. Unlike in general companies, it is not influenced by performance or evaluations.

• The 'Document, Correspondence, Transportation, and Lodging Allowance' was often called a 'second salary' because its main feature was that no report on its use was required, but it has been renamed the 'Allowance for Research, Public Relations, and Lodging.' A monthly sum of 1 million yen is provided to conduct legislative activities such as research on national affairs, public relations, interaction with citizens, and lodging. Although experts criticized this, noting that 'if you include phrases like "interaction with citizens" in the purpose, even spending at bars becomes possible,' it was passed by a majority of the ruling and opposition parties, excluding the Communist Party, and issues regarding the disclosure of usage and the return of unused funds to the national treasury were postponed. Subsequently, it was amended in December 2024, requiring members of both the House of Representatives and the House of Councillors to submit a report once a year with receipts attached to the Diet for public disclosure, and any remaining funds must be returned.

• Regarding travel expenses, members can obtain unlimited JR tickets, airline tickets, etc. In companies, similar expenses are reimbursed based on actual costs.

• Legislative administrative expenses are funds provided to each parliamentary group to support research and studies related to the legislation of Diet members. 650,000 yen per month is provided per member, based on the number of members in each group. These funds are not paid directly to the members but are paid to the parliamentary group and managed and spent by a designated legislative administrative expense accounting officer. While each group is supposed to appoint such an officer to handle these funds, in reality, they are often recorded as income for the party headquarters and used for headquarters expenses. In contrast, while research expenses in companies are similar to this item and it is common practice to reimburse business expenses based on actual costs, the use of these legislative administrative expenses is not required to be disclosed.

• Despite being located in prime areas of the city, Diet member dormitories have rents that are far lower than private market rates. (In the case of the New Akasaka Dormitory, where members can move in for 92,127 yen per month, the private market rent for a rental property of the same size in the neighborhood is about 500,000 yen per month.) Inappropriate usage methods also frequently become an issue.

• The salaries of publicly funded secretaries are also covered by public funds. The limit for coverage is for three people.

Detailed provisions can be confirmed in the 'Act on Salaries, Travel Expenses, and Allowances of Members of the Diet' on the e-Gov Law Search.

👉 In short, compared to companies, Diet members have many allowances that are 'fixed amounts that can be used freely,' and reporting obligations are lenient. This is extremely unique in that it has turned the discretionary power to choose how to spend funds into a public expense.

4. Merits and Demerits in a Democratic State

✔ Merits

• Members can concentrate on their duties without economic worries, enabling high-quality legislative activities and regional support, and stable execution of parliamentary activities can be expected.

• While a system of non-payment would narrow the gateway to political participation due to poverty, compensating with public funds ensures opportunities for political participation for a wide range of citizens.

• In terms of securing talent, recognizing the job of a politician as an economically stable profession makes it easier for diverse talent to run for office, leading to the revitalization of democracy.

• The professionalization of politicians ensures expertise and continuity.

• Political independence is maintained, leading to the suppression of corruption and bribery.

✖ Demerits

• High allowances and a lack of transparency increase the impression of a 'privileged class' and carry the risk of undermining democratic trust.

• This is a factor that fosters a sense of unfairness and invites distrust in politics.

• Allowances with unclear purposes are easily criticized as a waste of tax money and could shake the foundations of democracy. They could also become a hotbed for misuse.

• There is also a deep-seated suspicion that some allowances have been used for private gain, threatening the social mission of the system.

5. Toward Modern Optimization: What Citizens Can Do

The economic privileges of Diet members should be reviewed in accordance with the demands of the times and society. What can we, the citizens, do to maintain an appropriate level that matches modern political activities?

1. Demand Information Disclosure and Transparency

Demand that lawmakers support legal amendments that mandate the periodic disclosure of expenditure details for research, study, public relations, and travel expenses, as well as legislative administrative expenses.

2. Make the Voices of Residents Heard

Exercise opportunities to question lawmakers about the effectiveness of their expenditures through elections, opinion statements, and direct inquiries.

3. Take an Interest in Politics

Take an interest in the activities of lawmakers and discussions regarding annual allowances and benefits, and use this information as a basis for judging candidates during elections.

4. Support Civic Movements and NGOs

Strengthen public support by having citizens get involved with private organizations that aim to improve the system.

5. Support Institutional Reform

Support the passage of amendment bills (such as temporary freeze bills) that incorporate flexibility into the system, allowing for the reduction of annual allowances and benefits during emergencies like the COVID-19 pandemic.

📝 Summary

Behind the design of the system lies a constitutional requirement that 'livelihood security should be institutionalized so that talented people from poor regions can participate in politics.' However, at the same time, a system that tends to be fixed-rate and opaque is shaking the public's trust.

What we citizens can do is 'know, ask, and appeal'—first, know the details of expenditures, ask for disclosure, and make our voices heard for appropriate institutional reform. The foundation of democracy lies in keeping a watchful eye on those who use power and privilege, and in correcting and monitoring them when necessary.

💡 Finally

Whether 'freedom in the name of privilege' serves the public good is determined and refined by the critical eyes of us, the citizens. We share that responsibility.
To maintain a healthy democracy, it is essential to continue pursuing a system design that secures the economic foundation of Diet members while increasing their transparency and earning the trust of the public.

Thank you for reading until the end.

If you have any thoughts or feedback, you are welcome to share them here. I will use them as a reference for the future.