Salary: same as a national MP, meaning £61,820 for a British MEP. Tax paid at UK rates. The highest earners are Italian MEPs.

Pension: Basic pension arrangements for MEPs and MPs are the same, but MEPs can also join an additional European Parliament pension scheme. MEPs contribute personally (at the current rate of exchange) £771 per month to the fund and this is matched by a contribution from the Parliament of twice the amount, giving an annual lump sum of some £18,500. The personal contribution to the scheme is, 'for administrative reasons,' deducted at source each month from the parliament's general expenditure allowance, paid towards MEPs' office expenses. MEPs are supposed to make arrangements to compensate for this deduction out of their private income. Chris Davies alleges: “It may be the case that scores of MEPs are having even their private contributions to the pension fund met out of public expense. I have described such practices as "akin to embezzlement".”

Staff: The European Parliament pays annual allowances worth up to EURO 185,952 per MEP towards staff costs. The parliamentary assistance budget is required to be administered independently by a 'service provider'.

Office management costs: MEPs have an office costs allowance of EURO 47,352 per year to cover office management, phone bills, stationary and other equipment.

Subsistence: MEPs receive a Brussels/Strasbourg attendance allowance of EURO 279 per day towards accommodation and subsistence costs, but this is subject to them participating in votes and signing a daily register to indicate their presence.

Travel: MEPs are reimbursed for travel from Britain by payment for the cost of an open economy ticket plus an allowance for distance travelled. They are not reimbursed for travel within their constituency and no tickets for family members are provided. Mr Davies said: “These longstanding travel arrangements for MEPs pre-date the era of low cost airfares and, depending on locations and circumstances, can allow some MEPs to make a tax free surplus in excess of £10,000 per annum from the allowance. Reformers have long argued that the travel reimbursements should be paid at cost, and this principle has been supported by every British MEP.” A further annual travel allowance of up to EURO 2,895 a year is available for other visits on parliamentary business around the world.

Times Recommends

• Rio Tinto four held as China prepares case
• Diplomats must keep heads down and trousers up
• When in Rome should one make like Berlusconi?