Bill introduced to freeze MP’s pay

A bill to freeze the pay of MPs for one year will be introduced into Parliament today, says Prime Minister Jacinda Arden and Workplace Relations and Safety Minister Iain Lees-Galloway.

“The Government is focussing on lifting incomes for ordinary working Kiwis, and sharing New Zealand’s prosperity more fairly,” Jacinda Ardern said.

“MP salaries have risen at a rate that is out of proportion with wage growth of most New Zealanders, since the current system of determining MP remuneration was changed in 2015.

“Today’s Bill will put freeze on salaries and allowances while we develop a fairer formula for future pay increases.”

Iain Lees-Galloway said the Remuneration Authority (Members of Parliament Remuneration) Amendment Bill would provide the time necessary to introduce a fairer, more equitable and durable system to set MP pay.

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

“Then, 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.

“All future determinations will be made independently by the Remuneration Authority,” Iain Lees-Galloway said.    

The freeze will apply to MPs’ salaries, superannuation subsidies and expense allowances. It will not affect certain services such as accommodation and travel, because these services relate to the differing requirements of roles that MPs and Ministers may perform.