MPs get pay rise package of $7000

KATE NEWTON
Last updated 05:00 17/11/2011

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Now there's even more incentive for election candidates who make it into Parliament – MPs have just been awarded a $7000 pay rise.

The Remuneration Authority, the independent body that sets politicians' pay, has given MPs an across-the-board salary increase of 1.5 per cent and a $5000 payment to compensate for their axed international travel perk.

Backbenchers will now be paid a base salary of $141,800, up from $134,800. The next prime minister's salary will rise from $400,500 to $411,510. The increases are backdated to July 1 this year.

The $7000 rise in backbencher pay would take a fulltime worker on the minimum wage three months to earn.

A 90 per cent international travel subsidy for MPs and their spouses was scrapped in January, after several MPs – including Sir Roger Douglas, Rodney Hide and Chris Carter – were accused of abusing it.

The $5000 payout was to make up for that loss, authority chairman John Errington wrote in a memo accompanying the changes. "If the value of the personal benefit of those entitlements significantly decreases, there should be a compensating adjustment to salaries."

The 1.5 per cent general increase was less than inflation and wage increases across the country. "In recent years, members' remuneration packages have not kept pace with increases in the cost of living, nor with general wage movements."

The authority also bumped up MPs' tax-free allowances, which pay for meals, gifts and other expenses, from $15,300 to $16,100. The changes come just a month after the State Services Commission revealed nearly 1000 public service jobs were slashed in the year to June 30.

HOW THEY'RE PAID

PRIME MINISTER New salary (backdated to July 1): $411,510. Was: $400,500.

DEPUTY PRIME MINISTER New salary: $291,800. Was: $282,500.

CABINET MINISTER New salary: $257,800. Was: $249,100.

MINISTER OUTSIDE CABINET New salary: $217,200. Was: $209,100.

SPEAKER AND OPPOSITION LEADER New salary: $257,800. Was: $249,100.

BACKBENCHERS New salary: $141,800. Was: $134,800.

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- © Fairfax NZ News

111 comments
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Richard   #111   01:25 pm Jan 17 2012

#110 - Lynette, that page you linked is incredibly out of date. MPs do not get these salaries for life. They used to, once they served a certain number of years, but that went out in the late 90's and a super scheme was set up instead. I'm not saying that MPs are hard done by, only that the data you linked to and the perks listed there are mostly GONE.

Lynette Baker   #110   02:21 pm Jan 14 2012

But if you read this page, you'll see that in real terms, they get twice as much as that stated above and for the rest of their lives.......

http://crash.ihug.co.nz/~grums/perks.html

Sean   #109   10:44 pm Nov 17 2011

#101... I'm curious.... no idea on what? And you're saying people who don't earn much have no idea? You don't need to have money to have an educated opinion, and quite frankly any PM who says there is no need to raise minimum wage, then accepts a 400k pay packet, when already comfortably wealthy, is a disgusting hypocrite. Get ready to tighten your belts people, the MP's are hungry!!!!

Captain Janeway   #108   10:29 pm Nov 17 2011

An absolute kick in the teeth for those of us struggling to make ends meet and to feed our kids. My husband is a government employee and has had no pay rise in 4 years and has recently been told not to expect one anytime soon. So their wages haven't kept up with inflation? Well, boo freaking hoo - neither have most NZer's wages. They need to suck it up and tighten their belts just like the rest of us. At the moment I am not particularly interested in voting. But I would consider giving my vote to the party that refuses this pay rise.

Neelish   #107   10:14 pm Nov 17 2011

Volkade - we need responsible, bright people n charge. Why would someone take minimum wage to run a country when they can earn top dollars elsewhere?

And who are you to suggest that nobody needs that much money? It's not always about them, some people just want the best for their family. Heck I would happily take that wage - it would mean financial security, decent schooling and private health care as well as being able to take holidays in nice places.

And people need to read! This is an independent authority who have made this change. If you're not happy, GET A BETTER JOB!

Noel   #106   09:54 pm Nov 17 2011

Some do call them "trough feeders". Given they have tinkered with everyones superannuation whilst the taxpayer contributes 20 per cent of theirs, have overseen no pay rises for some public servants for the last four years, and in the past introduced conditions such as spouses overseas trips that are unheard of in any other employee group, we should not be surpised of the latest announcement. No leading by example from the very people who are asking for us to vote for them. Time to return a blank voting form in protest.

ace   #105   09:16 pm Nov 17 2011

this is crap because the majority of NZers (the 99%) taxes pay for these MP's salaries so effectively we (the tax payers) are their bosses. They have to represent us as "we" vote them into power. 120 MP's is far too many. NZ is screwed. If this keeps up.. we will be acting like Greece soon enough.

Volkade   #104   08:42 pm Nov 17 2011

Jesus nobody needs that much money. Cut politician's pay back down to something far less insane, and use the rest of the money on subsidizing basic prices for shit we're struggling to get to survive.

I know everyone says "Oh if I were Prime Minister, I'd do things like this: insert stupid idea"

Personally, for me to fix the country the way I'd intend to, I'd need to take over as dictator or something. Scrap all current laws and rebuild them to fit modern day issues.

A PM doesn't need a fancy car, a massive house, a boat etc. Necessary travel costs, a place to sleep and some cheap food is all one really needs, if our politicians lived like Students, and re-invested the rest of the money back into the economy, things would go a lot smoother.

George   #103   06:59 pm Nov 17 2011

You'd think they're on the minimum wage of $13/hour and need a raise.

JGM   #102   06:59 pm Nov 17 2011

Of course they could just say 'no' to it.


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