Government takes first step to freeze MPs' pay

September 18, 2018

The Prime Minister said Cabinet confirmed a decision to freeze MPs salaries and allowances for a year.

The Government will take the first steps to freeze MP pay, in an attempt to share "New Zealand's prosperity more fairly", Prime Minister Jacinda Ardern announced today. 

A bill to freeze pay will be introduced to Parliament, which will freeze MP salaries and allowances until July 2019 "while we develop a fairer formula for future pay increases".

"MP salaries have risen at a rate that is out of proportion with wage growth of most New Zealanders," she said. 

It comes after the Remuneration Authority, that sets MPs' pay rates, had recommended a three per cent pay rise for MPs in August. 

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

Workplace Relations Minister Iain Lees-Galloway said over the next year "officials will look at the settings for determining future MP pay increases, with possible further changes in place before next year’s review". 

"Because of the timing of the annual salary review process set in law, the Government must initiate this process to freeze pay quickly."

SHARE ME