The Parliamentary Salaries and Allowances Determination 2012

December 21st, 2012 at 7:00 am by David Farrar

The Remuneration Authority have published their 2012 determination. While most people will be unhappy that MPs get paid more than $2 an hour, it is worth noting what the Authority has said:

In recent years, members’ remuneration packages have not kept pace with increases in the cost of living, nor with general wage movements. …

Since fiscal year 2009 general salaries and wages have increased by 5.6% and the Consumers Price Index has increased by 8.0%. Parliamentary salaries (excluding the $2,000 and $5,000 increases in 2010 and 2011 to compensate for the reduction in value of the travel discount entitlements) have increased by only 2.9%.

Taking into account the prevailing adverse economic conditions and the small reduction in assessed value of the travel discount entitlement, the Authority has decided to apply a general increase this year of around 1.9%.

This still leaves members of Parliament receiving lower remuneration increases than the general population.

So what are the new salaries:

  • PM – $419,300
  • Deputy PM – $297,400
  • Cabinet Ministers – $262,700
  • Speaker – $262,700
  • Leader of the Opposition – $262,700
  • Ministers outside Cabinet – $221,400
  • Government Chief Whip – $196,420
  • Members of Executive Council not a full Minister – $192,700
  • Labour Deputy Leader – $188,470
  • Labour Senior Whip – $187,680
  • Deputy Speaker – $185,300
  • Green Party Leader – $178,230
  • Under-Secretaries $171,800
  • NZ First Party Leader – $169,410
  • Green Whip – $168,780
  • Maori Party Leader – $161,220
  • NZ First Whip – $159,960
  • Mana Party Leader – $158,700
  • Assistant Speakers – $158,700
  • National and Labour Junior Whips – $158,700
  • Select Committee Chairs – $158,700
  • Select Committee Deputy Chairs – $149,100
  • Member of Parliament – $144,600

Interestingly they seem to have decided that parties with over 45 MPs can now have a second junior whip funded.

I repeat my earlier point that should not be reviewed annually, but set for each parliamentary term in advance.

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29 Responses to “The Parliamentary Salaries and Allowances Determination 2012”

  1. Viking2 (11,352 comments) says:

    This still leaves members of Parliament receiving lower remuneration increases than the general population.

    Really. Lower than the unemployed or thoise that are still losing their jobs.

    Overheads gone mad.

    and I see Wgtn CC has appointed another workplace physcopath as its next CEO.

    That will go down like a lump of turd in the pan with the hoi poli in Wgtn.

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  2. mikenmild (11,246 comments) says:

    Yes V2, fun with words and numbers. A flawed system and a flawed result.

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  3. big bruv (13,688 comments) says:

    With the exception of the PM and cabinet ministers (irrespective of the political party) our MP’s are overpaid.

    Back bench and opposition MP’s are of very little real value. A salary of around $50,000pa would better indicate their true worth.

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  4. Manolo (13,517 comments) says:

    Almost $300K wasted on Double Dipton, who does bugger all.

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  5. Rightandleft (662 comments) says:

    The hypocrisy is stunning. The PPTA teachers just settled for a 1.1% pay increase this year as the government was completely unmoved by arguments that this was well below inflation levels and the predicted increast in the CPI and amounted to a sizable pay cut in real wages. For all the complaining about the bullying militant teacher unions we accepted a significantly lower pay increase than those in the private sector have apparently been getting and lower than MPs are now getting, and ours with no back-dating. Teachers accepted it without a single day of industrial action because we recognised the difficult economic situation. This pay increase to MPs is a slap in the face.

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  6. big bruv (13,688 comments) says:

    “The PPTA teachers just settled for a 1.1% pay increase this year”

    1.1% more than they were worth.

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  7. Mobile Michael (441 comments) says:

    I’ve never understood why Whips get paid additional as the role is a party organisation one, not a function of governing. Anyone know why?

    [DPF: Whips play a key role in the House and the administration of Parliament]

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  8. kiwigunner (230 comments) says:

    big bruv – you are simply are a dickhead.

    The move for state servants is towards performance pay. Let’s take a look at this for say Hekia Parata. Rated as hopeless by almost every commentator and media outlet she gets a pay rise for what exactly?

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  9. Rightandleft (662 comments) says:

    Big Bruv, This irrational hatred of teachers from some of you on the right is really pointless. Making statements like you do above only hurt any argument you could make on education policy. Evidence be damned, you just don’t like teachers. Or perhaps you just don’t like the whole concept of a public education system. In any case the point here is if you already think the teachers we have are useless do you think paying them even less will improve the quality? Do you think back-bench MPs are all of such excellent quality they deserved this back-dated pay increase?

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  10. flipper (3,947 comments) says:

    1. Manolo, you really should get of the grass. Like everyone, W.English has faults. But your pointless crusade diverts froim your normally sane coimment.

    2. Who was it that appointed the English wench to head Education? That overpaid twerp should resign. Parata’s performance has been blighted by Longstone and Rennie.

    3. The silly Herald this morning banners the parliamentary salary piece by saying “Key gets $150 a week increase”.

    4. Remind us all of bureaucratic in excess salaries…600 – 800Ks ?

    5. Time for David’s Parliamentary pay scheme to be instituted, and for bureaucrats at all central and local governmein to be pinned BENEATH that of the Prtime Minister.

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  11. Pete George (23,426 comments) says:

    If MP salaries were bulk funded the leader of National would get $5.5m (back benchers $13.5 an hour), all Labour salaries are equal…

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  12. mikenmild (11,246 comments) says:

    flipper
    Your points 2 to 5 are worth discussion. You denied your entire comment’s credibility by referring to Manolo as ‘normally sane’ though.
    Given that the quality of Cabinet Ministers and senior public service executives seems to be entirely unrelated to the amount of remuneration received, maybe they should all just get a fixed (smallish) margin above the median wage.

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  13. homepaddock (435 comments) says:

    “NZ First Party Leader – $169,410 NZ First Whip – $159,960″

    That looks like double dipping as all NZ First MPs just do whatever their leader says.

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  14. spotswood (4 comments) says:

    Teachers used to get the same salary as MP’s years ago..I think I would trust a teacher over a politician anyday

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  15. tvb (4,319 comments) says:

    Yes a determination say 1 July in election year to come into force from election day. And then a inflation adjusted adjustment in between times from 1 July each year would seem fair.

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  16. Mark (1,471 comments) says:

    The salaries are reasonable, agree with Farrar that the MP salaries should be set for 3 years prior to the commencement of the parliamentary term. It would stop all the gnashing of teeth and anxiety that besets the public when these salaries are reviewed each year.

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  17. dime (9,800 comments) says:

    teachers are getting ANOTHER pay increase this year? jesus.

    what is Dunne earning? $221,400? I guess thats enough to pay for his wind tunnel tested hair cut

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  18. flipper (3,947 comments) says:

    Miken…

    Mmnnnn….. But Miken, when do bureaucrats actually do “something” to generate their salaries?

    Do they ever produce products or services? Do they “sell” what they produce?

    Their every single function is mandated by statute or regulation, and often “purchasers” are compelled to “buy”.
    No public “service” salary is earned, by the real world definition. They are simply clerks :)

    At least with politicians they are (or were) elected and subhject to a three year review, without any guarantee of continued employment. NO ERA oversight! No dinosaur-like SSC to screw up with our dollars. No PSA to cover their collective arse.

    Perhaps I was a little harsh in respect of Manolo. :)

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  19. mikenmild (11,246 comments) says:

    Could you tell me which public servants have a guarantee of continued employment?

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  20. Rich Prick (1,659 comments) says:

    So, who thinks we get our money’s worth out of Rajen Prasad?

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  21. Rich Prick (1,659 comments) says:

    “Could you tell me which public servants have a guarantee of continued employment?”

    Oh, I don’t know, teachers, university lecturers and somesuch seem to have pretty good security of tenure.

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  22. mikenmild (11,246 comments) says:

    Well, he is a waste of money indeed. When you vote for a party you vote for the whole list though, except for NZ First, United Whatever, and Mana which are all one-person shows.

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  23. flipper (3,947 comments) says:

    Miken..

    Rich has answered your question.

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  24. Dave Stringer (188 comments) says:

    So
    if you have a party with more than one leader, do they have to split the leaders salary between them, or do they get it each?

    If they get it each it’s a wonder some parties haven’t changed their constitution to have six or more co-leaders!

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  25. David Farrar (1,883 comments) says:

    I understand they split the salary between them.

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  26. Rex Widerstrom (5,346 comments) says:

    members’ remuneration packages have not kept pace with increases in the cost of living

    Could someone explain to me, with reference to what it actually costs to live a comfortable but not ostentatious life in NZ, how you could not do so on $141,800 (the previous salary of an ordinary MP) and why the taxpayer must now find another $2,800 for Brendan Horan et al?

    And I imagine very, very few fall under the “ordinary MP” heading, as Select Committee Chairs, Deputy Chairs, Under Secretary-ships are handed out like lollies.

    This still leaves members of Parliament receiving lower remuneration increases than the general population

    That’s as maybe. But they’re certainly not receiving less remuneration than the general population, so rather than lamenting how hard done by this small elite group are, perhaps we should be lamenting how slowly the rest of us are catching them up.

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  27. Rex Widerstrom (5,346 comments) says:

    Rich Prick asks:

    So, who thinks we get our money’s worth out of Rajen Prasad?

    I was going to say I did, on the basis that you need a baseline against which the incrementally better performance of everyone else can be measured.

    Then I realised we could simply have had a deceased MP stuffed and mounted to provide the same baseline, and the only cost would be having someone come in to dust him occasionally.

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  28. Positan (386 comments) says:

    When I was younger I believed our parliament and MPs stood for something. In those days both the system and the MPs were respected. Today, I view the entire setup with feelings far closer to contempt.

    Contempt for the fatuous, unproductive, PC-stupidity of MMP and for the grandstanders it has enabled to be inflicted upon us.

    Contempt for those who use the parliamentary system and our so-called “democracy” as a legitimate means to further their own wants and ends, irrespective of the utter valuelessness of their substance and contribution.

    Contempt for the belief that more is better – both in the absurd number of our MPs and what is pretended to be “fair” payment for their “efforts.”

    Contempt for the general lack of substance in non-voted-for, and thus non-elected, party-list MPs – and even greater contempt for the touted belief that they are in any way representative of the actual wishes and desires of the electorate – especially as to direction and policy.

    Contempt for the fact that our system dictates we must sustain a virtually worthless, leaderless and dysfunctional Opposition of patent trough-hoggers that can only demonstrate its presence by targeting personalities rather than opposing, with quantifiable reason, questionable aspects of policy, so that they may uphold the “appearance” of a Westminister system, rather than perform that function as it is meant to be performed.

    I could go on – but really, what’s the point. I’m now totally disillusioned by the system and the transparent greed of those who feed from it.

    The ass-kissing members of the Remuneration Authority should be flogged naked in public for this latest “determination.” It is a complete and utter disgrace.

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  29. Steve (North Shore) (4,541 comments) says:

    flipper @ 9.07

    Do they ever produce products or services? Do they “sell” what they produce?

    They sell all right, they sell themselves to you and me. They are prostitutes and us Taxpayers are paying a shit load of money to be screwed – no matter which Party is the Govt

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