MP pay frozen and fairer system for increases developed

The Government is freezing MP salaries and allowances for a year while developing a fairer formula for future pay increases.

The Remuneration Authority is due to make a decision on MP pay shortly.

“Today Cabinet agreed to freeze MP Pay till July 2019, and to reassess the funding formula used by the Authority to ensure it is fair and in keeping with this Government’s expectations and values,” Prime Minister Jacinda Ardern said.

“I have notified all party leaders of this decision.

The  Minister for Workplace Relations and Safety Iain Lees-Galloway said the Government needed to take action before the Remuneration Authority initiated new pay rates.

“Because of the timing of the annual increase process set in the Act, we need to use an urgent legislative process, aiming for introduction in September.

“This means we need to amend the Remuneration Authority Act 1977 to suspend new Determinations by the Remuneration Authority and restore the 2017 Parliamentary Salaries and Allowances Determination until 30 June 2019,” Iain Lees-Galloway said.