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Payrise likely for MPs

Last updated 17:23 18/12/2012

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MPs are in line for a Christmas bonus of several thousand dollars.

The Remuneration Authority confirmed today it expected to issue its annual review of MP salaries on Thursday - backdated to July 1, meaning they are in line for backpay as well.

Based on a pay rise in the order of 1.5 per cent, that could be $6000 plus for Prime Minister John Key, while a back bencher will get an extra $2000-plus a year.

But MPs could also be in line for an adjustment worth a couple of thousand dollars more, based on changes to their international travel discount which was estimated to have left them about $9000 a year worse off.

The Remuneration Authority has already adjusted their pay by $5000 and $2000 over the last two pay rounds and is likely to top up pay packets further in its determination on Thursday.

Remuneration Authority chief executive John Errington said he could not discuss details till the determination was gazetted.

But when asked if the payrise was likely to be in the order of last year's rise of 1.5 per cent he confirmed that was likely.

The annual pay rise is always controversial and likely to attract stiff criticism again this year after  pre-Christmas news that motorists will be stung by a hike in petrol taxes by 9c a litre over the next three years.

The increase will collect an extra $370 million a year in taxes by 2015.

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