Pay freeze for MPS for next 3 years

The Prime Minister and other politicians will not get a pay rise for the next three years, the Remuneration Authority has revealed.

The Remuneration Authority yesterday released MPS’ pay rates for the next three years — and decided to give them no increase at all, citing the economic conditions of Covid-19.

MPS’ pay has now not moved since mid-2017. The Prime Minister will remain on $471,049 a year and Leader of the Opposition Judith Collins on $296,007.

Ministers earn $217,676 and backbench and Opposition MPS are paid just under $164,000.

The Remuneration Authority said it had considered the economic conditions and decided they were unlikely to significantly improve over the three-year period it had to set the salaries for.

However, it said if there was a “marked change in the economy” it could make a change in future.

The Remuneration Authority said it considered expert advice from a range of sources, including the Reserve Bank and Treasury.

“The authority could find no compelling evidence that pointed to when the economy might recover to pre-covid levels, regardless of some recent good economic news.”

A spokesperson for the Prime Minister said she had urged restraint in a submission to the Remuneration Authority.

A six-month pay cut MPS took in solidarity with other workers during Covid-19 is still in place, but will end on January 6. That was after a request from the Prime Minister — and backed by Opposition MPS — that saw ministers’ pay cut by 20 per cent and normal MPS’ by 10 per cent.

Despite the PM’S plea for restraint, the Remuneration Authority has to weigh up other factors including maintaining relativity with the pay received by those in other professions.

For the first time, the Remuneration Authority has had to set the salaries for each of the next three years until the next election, rather than making annual adjustments. The change made by the Government helps spare the politicians their Christmas blushes when each year’s announcement was made.