Prime Minister John Key will get $3895 in backpay and an
extra $150 a week as a result of a 1.9 per cent increase for
MPs awarded by the Remuneration Authority.
The increase means $1400 in back-pay and an additional $53 a
week before tax for backbench MPs.
The Remuneration Authority - the independent panel of three
that sets pay for MPs, other elected officials and judges -
says the 1.9 per cent increase is less than the rise in
general salaries and wages.
But the Public Service Association says the increase is more
than that received by other public servants in recent
The increase boosts Mr Key's annual base salary $7790 to
$419,300, equivalent to an additional $149.80 a week before
tax. As it is deemed to have come into effect on July 1 this
year, that means backpay of $3895, or $2594 after tax.
Backbench MPs' base pay rises $2800, or $53.80 a week before
tax, to $144,600. Their backpay will be $1400, or $932 after
Remuneration Authority chairman John Errington said MPs' pay
had not kept pace with increases in the cost of living or
with general wage movements.
Since 2009, general salaries and wages had risen 5.6 per cent
while parliamentary salaries, excluding the $2000 and $5000
increases to make up for the loss of travel perks, had risen
only 2.9 per cent, he said.
Yesterday's increase "still leaves members of Parliament
receiving lower remuneration increases than the general
But PSA national secretary Brenda Pilott said the increase
was higher than the 1 to 1.5 per cent settlements in most
public sector collective agreements from the past year.
She said many PSA members were angry about any pay increases
for ministers who presided over departments that were
struggling and cutting jobs to save money.
The backdating of MPs' pay was particularly galling as it had
been off the table in public sector pay negotiations for some
"To see that the ministers and MPs have had a decent-sized
pay rise backdated for nearly six months is just such a
double standard," Ms Pilott said.
The Remuneration Authority also announced a 2.5 per cent
increase in pay for judges, effective from October. That
takes a High Court judge's base pay from $385,500 to $395,137
and a District Court judge's salary from $293,000 to
Mr Errington said the higher increase reflected changes in
the legal profession.
$419,300 Prime Minister ($7790 increase)
$297,400 Deputy PM ($5600)
$262,700 Crown ministers, the Speaker, Leader of the
$158,700 Party leader base salary ($3000)
$144,600 Backbench MPs ($2800)
$52,676 average NZ wage