MPs get pay rises

[comment caption=Do you think MPs are paid too much?]MPs have been given pay rises of between 3.8 percent and 4.8 percent, backdated to July this year.

The increases, determined by the independent Remuneration Authority and gazetted today, push up Prime Minister John Key's salary to $393,000 from $375,000 and his deputy Bill English to $276,700 from $264,500.

Cabinet ministers' salaries increase to $243,700 from $233,000 and ministers outside cabinet will be paid $204,300, up from $195,700.

The Leader of the Opposition, Labour's Phil Goff, will be paid $243,700, the same as a cabinet minister.

The basic salary for backbench MPs has increased to $131,000 from $126,000 although many of them get more than that because they hold a variety of positions like select committee chairs or deputy chairs.

All MPs get a range of expenses and allowances. Ministers who are not resident in Wellington get free houses, and those who live in the capital get a housing allowance.

The Remuneration Authority said it had considered salary movements in the state sector when it made the determinations.

"It has long been accepted that it is not appropriate for remuneration of those in elected office to be closely tied to the private sector, or to state-owned entities operating in a commercial environment, notwithstanding the responsibilities of senior politicians in particular," it said.

"It has been recognised that there is a need to maintain some relativity across the salaries paid to the Executive and other Members of Parliament, the judiciary, and the public service."

It said maintaining those relativities had become increasingly challenging as salaries for senior state sector positions, the legal profession and related professions had outstripped the salary movements of other people.

"On balance, the Authority has looked to movements in salary and the Consumer Price Index in the broader economy in applying increases ranging between 3.8 percent and 4.8 percent to parliamentary salaries, again modestly recognising the size of the responsibilities placed on members of the Executive and party leaders."

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