Kiwis ‘will hate’ MPs’ pay rise
It’s more than most Kiwis will earn, but some commentators say a pay boost for MPs, to $168,600, is fair after more than six years of no increases.
The Remuneration Authority yesterday reported back on the results of its independent pay review, deciding that MPs’ pay will rise by more than $17,000 over the next two years, with the prime minister in for a $50,000 boost by 2026.
But while the decision to lift the salaries is one independent of government, it will be a tough swallow for the public, who are struggling with the cost of living – and for the public service, who are being laid off in the thousands.
“[New Zealanders] will hate it,” political commentator Ben Thomas said, “as they always do. You can sort of understand it. For most people, that is huge money, and a lot of what we see from MPs really doesn’t foreground the hard work they are doing.”
MPs’ salaries will immediately be boosted to $168,600, backdated to the election.
The increase come at an awkward time for the Government, which is attempting to make cost savings of 7.5% so it can bolster its frontline services. It also comes after a period of pay austerity, implemented by the Jacinda Ardern Labour Government, when pay was frozen, and MPs took cuts in solidarity with workers not earning through Covid-19 lockdowns. The Remuneration Authority’s report was subsequently highly anticipated.
Former attorney-general Chris Finlayson said the raise was “very fair” given the rolling increases from the base of $163,961. A one-off raise of 2.8% would have been “very small”. The staggered increases will see pay rise incrementally, to $181,200 by June 2026. MPs are also eligible for other allowances, worth about $20,000.
Prime Minister Christopher Luxon, whose salary will rise from $471,049 to $484,200 this year, gradually increasing by $50,000 by June 2026, immediately said he would be donating the increase to charity.
Finlayson said MPs and ministers shouldn’t comment on the rise at all, but simply accept it gracefully and quietly and move on.
Finance Minister Nicola Willis has previously said she would be uncomfortable with a pay rise. Yesterday ACT leader David Seymour, speaking before the authority’s findings, said a rise wouldn’t be great timing and “from the point of view of someone like me, you’re kind of damned if you do, damned if you don’t”.
The minimum wage rose 2% from April 1, to $23.15 an hour, or $48,152 a year. In the year to the June 2023 quarter, the average median weekly income from wages or salaries was $1273, or $66,196.
Thomas said that even with the pay rise, MPs might still be “underpriced”.
“Being an MP is a tough job. Increasingly, you are exposed to threats, harassment, issues that didn’t really exist in the past, in terms of social media abuse ... in terms of outright pay, you could earn more as a reasonably middling public servant without any of the hassle.”
While the productivity and skill level of MPs certainly differed across the board, it would be too difficult to calculate individual pay, he said. Likewise, the public was likely unaware of the amount of work MPs do put in. “Someone can be an effective MP without contributing anything to policybut being a faithful conduit from their community to Parliament, by going to every school opening, community event, making sure what’s happening in the community makes it to Wellington.”