How Much Does Congress Make? An In-Depth Look at Congressional Salaries and Benefits

Overview of Congressional Salaries and Benefits

Congressional salaries and benefits refer to the compensation and incentives provided to members of the United States Congress. These salaries and benefits are determined by a complex system of rules and regulations, and can vary depending on the member’s seniority and other factors. In this article, we will take an in-depth look at congressional salaries and benefits, exploring the different types of compensation, how they compare to other occupations, and how much Congress makes in a year.

Definition of Congressional Salaries and Benefits

As defined by the Congressional Research Service (CRS), congressional salaries and benefits are “the compensation and incentives provided to members of the United States Congress.” This compensation includes both monetary and non-monetary forms of remuneration, such as base salary, cost of living adjustment (COLA), additional allowances for expenses, bonuses and incentives, and other benefits.

Types of Compensation for Members of Congress

The United States Congress is divided into two chambers: the Senate and the House of Representatives. The compensation for members of each chamber is slightly different, with the Senate typically receiving higher salaries and more generous benefits than the House. Generally speaking, members of Congress receive the following types of compensation:

• Base Salary: Members of Congress receive an annual salary that is set by law. As of 2020, members of the Senate earn an annual salary of $174,000, while members of the House of Representatives earn an annual salary of $174,000.
• Cost of Living Adjustment (COLA): Members of Congress are entitled to an annual cost of living adjustment (COLA) that is determined by the Consumer Price Index (CPI). This COLA is intended to help offset the effects of inflation on congressional salaries.
• Additional Allowances for Expenses: Members of Congress are also eligible for additional allowances for office expenses, travel, and other related costs.
• Bonuses and Incentives: Members of Congress may also be eligible for bonuses and other incentives, such as performance pay or leadership stipends.
• Other Benefits: Finally, members of Congress are entitled to a range of other benefits, such as health insurance, retirement plans, and access to certain government facilities.

An In-Depth Look at Congressional Pay and Incentives

Now that we have explored the basics of congressional salaries and benefits, let’s take a closer look at each type of compensation in more detail.

Base Salary for Members of Congress

Members of Congress are entitled to an annual salary that is set by law. As of 2020, members of the Senate earn an annual salary of $174,000, while members of the House of Representatives earn an annual salary of $174,000. This is significantly higher than the median household income in the United States, which was just over $60,000 in 2018.

Cost of Living Adjustment

In addition to their base salary, members of Congress are also eligible for an annual cost of living adjustment (COLA) that is determined by the Consumer Price Index (CPI). This COLA is intended to help offset the effects of inflation on congressional salaries, and is calculated based on the average change in consumer prices over the preceding 12 months. For 2021, the COLA was 2.6%, resulting in a salary increase of approximately $4,500 for members of Congress.

Additional Allowances for Expenses

Members of Congress are also eligible for additional allowances for office expenses, travel, and other related costs. These allowances are meant to cover the costs of running a congressional office, including staff salaries, office supplies, and other miscellaneous expenses. The amount of these allowances varies depending on the member’s seniority and other factors.

Bonuses and Incentives

Members of Congress may also be eligible for bonuses and other incentives, such as performance pay or leadership stipends. These bonuses and incentives are intended to reward members of Congress for their service and encourage them to continue to strive for excellence in their work.

Comparing Congressional Salaries to Other Occupations

It is important to consider how congressional salaries and benefits compare to those of other occupations. To do this, we will examine the average salaries of non-government employees, the salaries of high-ranking government officials, and the salaries of other elected officials.

Average Salaries of Non-Government Employees

According to data from the Bureau of Labor Statistics, the median annual wage for all non-government employees in the United States was $39,810 in 2019. This is significantly lower than the salaries of members of Congress, which ranged from $174,000 to $193,400 in 2020.

Salaries of High-Ranking Government Officials

High-ranking government officials, such as cabinet secretaries and Supreme Court justices, typically earn significantly more than members of Congress. According to the CRS, Cabinet secretaries and Supreme Court justices earn an annual salary of $210,700 and $255,300, respectively.

Salaries of Other Elected Officials

The salaries of other elected officials, such as governors and mayors, can vary significantly from state to state. According to the National Conference of State Legislatures, the highest-paid governor in the United States in 2020 was California Governor Gavin Newsom, who earned an annual salary of $201,680. The lowest-paid governor was Montana Governor Steve Bullock, who earned an annual salary of just $7,800.

Examining the Pros and Cons of Congressional Compensation

When it comes to congressional salaries and benefits, there are both pros and cons to consider. On the one hand, members of Congress are well-compensated for the important work they do, and the additional allowances and benefits can help reduce the financial burden of serving in office. On the other hand, some argue that congressional salaries and benefits are too generous, and could be used to fund other important programs and services.

Benefits of Congressional Salaries

One of the major benefits of congressional salaries is that they can help attract talented individuals to public service. According to a study by the Brookings Institution, high congressional salaries can act as an incentive for talented individuals to pursue a career in public service, rather than seek higher-paying jobs in the private sector. This can result in a more experienced and qualified pool of candidates for public office.

Potential Downsides to Congressional Salaries

On the other hand, many argue that congressional salaries and benefits are too generous. Critics point out that the salaries of members of Congress often far exceed the salaries of average Americans, and that the additional allowances and benefits can create a sense of entitlement among elected officials. Furthermore, some argue that the money used to fund congressional salaries and benefits could be better used to fund other important programs and services.

How Much Does Congress Make in a Year?

So, how much does Congress make in a year? As of 2020, members of the Senate and House of Representatives earn an annual salary of $174,000. In addition, members of Congress are eligible for an annual cost of living adjustment (COLA) of up to 2.6%, as well as additional allowances for office expenses, travel, and other related costs. Members of Congress may also be eligible for bonuses and other incentives, such as performance pay or leadership stipends.

How Has Congressional Pay Changed Over Time?

Congressional salaries and benefits have changed significantly over time. Historically, the salaries of members of Congress have been adjusted periodically to keep pace with inflation. In addition, the number and types of additional benefits and incentives have increased over time, including health insurance, retirement plans, and access to certain government facilities.

How Are Congressional Salaries Determined?

Congressional salaries and benefits are determined by a complex system of rules and regulations. Each year, the congressional salary level is adjusted based on the Consumer Price Index (CPI). In addition, other factors, such as seniority, committee assignments, and leadership positions, are taken into account when determining congressional salaries and benefits.

At the end of the day, congressional salaries and benefits are an important part of our political system. They provide an incentive for talented individuals to pursue a career in public service, and help ensure that members of Congress are fairly compensated for the important work they do. However, it is important to consider the potential downsides of congressional salaries and benefits, and to ensure that the money used to fund them is being used in the most effective way possible.