Subj : Who holds the politicians' purse strings? How MPs' salaries are set
To   : All
From : News
Date : Mon Apr 22 2024 12:02 pm

While the Government cuts costs across various departments ahead of next
month's Budget, MPs are due to find out if they're getting a pay raise this
term.

Our politicians' annual salaries are determined by an independent body - the
Remuneration Authority.

The authority sets the salaries for the Prime Minister, Leader of the
Opposition, Speaker, Cabinet members, chairs of committees and MPs, amongst
other roles.

It also determines superannuation and a basic allowance for MPs to cover
expenses such as memberships, fees, entertainment of visitors, and koha.

Allowances for accommodation costs while travelling in New Zealand, travel
costs for MPs' families when joining them on parliamentary business, and
Wellington accommodation costs for MPs who normally live elsewhere, also fall
under the Remuneration Authority.

The authority must begin a review of MPs' salaries within the three months
after a general election. That review determines their pay for that term of
parliament.

How does the authority set MPs' pay?

The Remuneration Authority Act 1977 sets out the criteria the authority must
consider when setting MPs' pay.

That includes looking at what the job entails; making sure the pay is fair
when compared with similar roles; a need to recruit and keep competent people
in the job; and any adverse economic conditions that might be taking place at
the time.

MPs with additional responsibilities, such as the Prime Minister or Cabinet
Ministers, get a higher salary due to the extra duties that come with those
positions. The authority doesn't need to match their pay with "similarly
responsible" roles.

The authority invites all MPs to offer any comments about their salaries and
allowances before a decision is made.

It also has to consult the Speaker of the House (currently Gerry Brownlee)
and the Minister Responsible for Ministerial Services (currently Christopher
Luxon) before finalising its decisions.

How much do MPs currently get paid?

The base salary for an MP who doesn't have any extra responsibilities, such
as chairing committees or being a party whip, is currently set at $163,961.

The Prime Minister's salary is $471,049, while the Deputy Prime Minister
receives $334,734. Members of Cabinet currently receive a salary of $296,007.
The leader of the Opposition also receives $296,007. A rundown of all MP
salaries can be found here.

MPs are due to find out what the Remuneration Authority has recommended for
their salaries by the end of this month.

It has been more than six years since MPs had an increase in pay.

Even though the Remuneration Authority recommended members get a 3% pay raise
in 2018, then-Prime Minister Jacinda Ardern announced a pay freeze on all MP
salaries. There were widespread strikes by nurses and teachers over their own
pay at the time.

Ardern said it was "just not appropriate for MPs to be the subject of such an
increase"

The Covid-19 pandemic then led to MP salaries being frozen for another three
years.

MPs also temporarily took pay cuts of between 10-20% in 2020, which Ardern
said was an acknowledgement of "New Zealanders who are reliant on wage
subsidies, taking pay cuts and losing their jobs as a result of Covid-19's
global pandemic".

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