Revealed: How much is being saved by public service bosses' 20% pay cut

Prime Minister Jacinda Ardern has announced a pay cut for herself, Government ministers and public service bosses.

Today Prime Minister Jacinda Ardern announced all public service CEOs, Government MPs and herself will be taking a 20 per cent pay cut for the next six months, a move that is estimated to save more than $2 million.

According to pay remuneration data released last year, the public service chief executives are paid a total of more than $16.4 million. 

With the 20 per cent pay cut over six months, it reduces that to $14.8 million - saving $1.6 million.

Government ministers and the Prime Minister are also taking pay cuts, making up another $800,000 in savings.

Ms Ardern herself earned $471,049 a year in salary, making her the seventh-highest paid world leader. This pay cut reduces her salary by $47,000 to around $424,000.

Director-General of Health Dr Ashley Bloomfield, a key face of New Zealand's Covid-19 response, was paid $528,000 last year.

He'll now earn $475,200, a reduction of $52,800.

The highest paid public service CEO last year was Treasury boss Gabriel Makhlouf, who was paid a $681,000 salary.

He was replaced by Caralee McLiesh in September.

The 20 per cent wage cut would reduce that salary by $68,100 to $612,900.

National leader Simon Bridges says he will also take the 20 per cent pay cut, while ACT leader David Seymour is campaigning for all MPs to have their pay reduced during the crisis.

Deputy Prime Minister Winston Peters' pay will be reduced from $334,734 to $301,261, while Cabinet ministers will be reduced from around $300,000 to around $269,000 each.

Government ministers outside of Cabinet are being dropped from around $250,000 to just under $225,000 each.

The pay cut will last for six months, Jacinda Ardern said today.

Ms Ardern said the pay cut will be in place for six months, saying it's "about leadership".

"If there was ever a time to close the gap between different positions, it's now," she said today.

"This is where we can take action, which is why we have."

TOP 10 PAID PUBLIC SERVICE BOSSES AND WHAT THE 20 PER CENT PAY CUT WOULD COST THEM

Gabriel Makhlouf, Treasury - replaced by Caralee McLiesh last September: From $687,000 to $618,300

Una Jagose, Solicitor-General: From $666,000 to $599,400

Naomi Ferguson, Inland Revenue Department: From $657,000 to $591,300

Peter Hughes, State Services Commissioner and Head of State Services: From $630,000 to $567,000

Gráinne Moss, Oranga Tamariki/Ministry for Children: From $628,000 to $565,200

Iona Holsted, Ministry of Education: From $568,000 to $511,200

Dr Ashley Bloomfield, Ministry of Health: From $528,000 to $475,200

Vicky Robertson, Ministry for the Environment: From $513,000 to $461,700

Helene Quilter, Ministry of Defence - replaced by Andrew Bridgman last July: From $484,000 to $435,600

Carolyn Tremain, Ministry of Business, Innovation and Employment: From $481,000 to $432,900

UPDATED: An earlier version of this article contained details of public sector chief executives, as announced by the Prime Minister. A spokesperson for Jacinda Ardern later clarified that only public service chief executives are impacted by the pay cut. The article has been amended accordingly.

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