Leaders of the Christian Democrats (CDU) and their coalition partners the Social Democrats (SPD) say the increase is needed to keep pace with rising public sector pay, according to German news agency DPA.
The Hanover newspaper Neue Presse confirmed the report, saying a public sector wage increase was to be applied to MPs with a one-year delay.
Under the pay increases now planned, the 612 members of Germany's Bundestag would see their pay rise €278 ($430) to €7,946 on Jan. 1, an increase of 3.63 percent.
A second 2.68 percent raise – an increase of €213 each month to €8,159 – is planned a year later.
Germany's parliament gave itself a 9 percent raise in November.