Government shows leadership on MP pay

A Bill that will put a freeze on salaries and allowances while the Government develops a fairer formula for future pay increases has been passed into law today, says Workplace Relations and Safety Minister Iain Lees-Galloway.

“The Remuneration Authority (Members of Parliament Remuneration) Amendment legislation, to freeze the pay of MPs for one year, has been passed unanimously by the House today.

“This legislation reflects the Government’s priorities of lifting incomes for ordinary working Kiwis, and sharing New Zealand’s prosperity more fairly.

“This is the right thing to do. The Government shares the values of fairness, equality and transparency with all New Zealanders, and we’ve now acted on our view that the growth of MP salaries has not been in fair proportion to the wage growth of most New Zealanders in recent years.

“We will now embark on a process to establish a fairer, more equitable and durable system to set MP pay. 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 needed to sit under urgency to initiate this process to freeze pay quickly. All future determinations will be made independently by the Remuneration Authority,” Iain Lees-Galloway said.

Notes to editors:

  • 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.