link to page 13 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 1 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 2 link to page 4 link to page 4 link to page 4 link to page 4 link to page 4 link to page 4 link to page 11 link to page 11 link to page 11 link to page 11 link to page 11 link to page 11
2024/121
Parliamentary Salaries and Allowances Determination
2024
This determination (to which is appended an
explanatory memorandum) is made by
the Remuneration Authority under
section 8 of the
Members of Parliament (Remuner‐
ation and Services) Act 2013 and the Remuneration Authority Act 1977.
Contents
Page
1
Title
1
2
Commencement
1
3
Expiry
1
4
Interpretation
2
5
Salaries
2
6
Allowances
2
Schedule 1
4
Salaries payable under section 8 of Members of Parliament
(Remuneration and Services) Act 2013
Schedule 2
11
Allowances payable under section 8 of Members of Parliament
(Remuneration and Services) Act 2013
Determination
1
Title
This determination is the Parliamentary Salaries and Allowances Determin‐
ation 2024.
2
Commencement
This determination is deemed to have come into force on 15 October 2023.
3
Expiry
This determination expires at the end of the polling day for the next general
election.
1
link to page 4 link to page 5 link to page 7 link to page 9 link to page 4 link to page 11 link to page 11 link to page 11 link to page 11
Parliamentary Salaries and Allowances Determination
cl 4
2024
2024/121
4
Interpretation
In this determination,—
party means a parliamentary political party whose members in the House of
Representatives include at least 1 member elected as a constituency or list can‐
didate for that party
select committee means a committee that is established by, or in accordance
with,—
(a)
Standing Order 185(1) or (2) of the Standing Orders of the House of
Representatives (with effect on 9 September 2023); or
(b)
the corresponding provision of those Standing Orders (with effect on an
earlier or a later date).
5
Salaries
(1)
The salaries payable under
section 8 of the Members of Parliament (Remuner‐
ation and Services) Act 2013 are as follows:
(a)
for the period beginning on 15 October 2023 and ending on 30 June
2024, the salaries set out in Part 1 of Schedule 1:
(b)
for the period beginning on 1 July 2024 and ending on 30 June 2025, the
salaries set out in
Part 2 of Schedule 1:
(c)
for the period beginning 1 July 2025 and ending on 30 June 2026, the
salaries set out in
Part 3 of Schedule 1:
(d)
for the period beginning on 1 July 2026 and ending on polling day for
the next general election, the salaries set out in Part 4 of Schedule 1.
(2)
No member of Parliament may be paid more than 1 salary at any one time
under any of the provisions of
Schedule 1 and, if a member holds 2 or more
offices, the salary payable to that member is that payable for the office for
which the highest salary is payable.
6
Allowances
(1)
The basic expense allowances payable under
section 8 of the Members of Par‐
liament (Remuneration and Services) Act 2013 are as follows:
(a)
for the period beginning on 15 October 2023 and ending on 30 June
2024, the allowances set out in
subpart 1 of Part 1 of Schedule 2:
(b)
for the period beginning on 1 July 2024 and ending on 30 June 2025, the
allowances set out in subpart 2 of Part 1 of Schedule 2:
(c)
for the period beginning 1 July 2025 and ending on 30 June 2026, the
allowances set out in subpart 3 of Part 1 of Schedule 2:
(d)
for the period beginning on 1 July 2026 and ending on polling day for
the next general election, the allowances set out in
subpart 4 of Part 1 of
Schedule 2.
2
link to page 12 link to page 12 link to page 12 link to page 12 link to page 2
Parliamentary Salaries and Allowances Determination
2024/121
2024
cl 6
(2)
A basic expense allowance is paid to the recipient for the purpose of reimburs‐
ing the recipient for modest out-of-pocket expenses that arise from that recipi‐
ent’s official and parliamentary duties, or activities associated with a parlia‐
mentary purpose, and that are not otherwise covered by other determinations
made under the
Members of Parliament (Remuneration and Services) Act
2013.
(3)
The office-holder allowance payable
under section 8 of the Members of Parlia‐
ment (Remuneration and Services) Act 2013 is as follows:
(a)
for the period beginning on 15 October 2023 and ending on 30 June
2024, the allowance set out in subpart 1 of Part 2 of Schedule 2:
(b)
for the period beginning on 1 July 2024 and ending on 30 June 2025, the
allowance set out in
subpart 2 of Part 2 of Schedule 2:
(c)
for the period beginning 1 July 2025 and ending on 30 June 2026, the
allowance set out in
subpart 3 of Part 2 of Schedule 2:
(d)
for the period beginning on 1 July 2026 and ending on polling day for
the next general election, the allowance set out in
subpart 4 of Part 2 of
Schedule 2.
(4)
An office-holder allowance is paid to the recipient in recognition of duties per‐
formed as part of the recipient’s parliamentary duties while acting as an office
holder. The office-holder allowance is paid as a daily allowance in addition to
the salary that the office holder receives under
clause 5 of this determination.
3
link to page 2
Parliamentary Salaries and Allowances Determination
Schedule 1
2024
2024/121
Schedule 1
Salaries payable under section 8 of Members of Parliament
(Remuneration and Services) Act 2013
cl 5(1)
Part 1
Salaries payable 15 October 2023 to 30 June 2024
Yearly rate of
Office
salary payable ($)
Members of the Executive
Prime Minister
484,200
Deputy Prime Minister
344,100
Each member of the Executive Council who is a Minister of the Crown holding
304,300
1 or more portfolios and who is a member of Cabinet
Each member of the Executive Council who is a Minister of the Crown holding
256,800
1 or more portfolios but who is not a member of Cabinet
Each other member of the Executive Council
223,800
Each Parliamentary Under-Secretary
199,800
Officers of the House of Representatives
Speaker
304,300
Deputy Speaker
215,300
Each Assistant Speaker
184,700
Leader of the Opposition
Leader of the Opposition
298,000
Other party leaders
Each member of Parliament who is the leader of a party—
with less than 5 members in the House of Representatives
195,400
or
with 5 or more members in the House of Representatives
202,600
or
with 10 or more members in the House of Representatives
218,300
or
with 25 or more members in the House of Representatives
232,500
Each member of Parliament who is the co-leader of a party (
limited to a
maximum of 2 co-leaders per party)—
with less than 5 members in the House of Representatives
190,100
or
with 5 or more members in the House of Representatives
195,100
or
with 10 or more members in the House of Representatives
210,800
or
with 25 or more members in the House of Representatives
226,100
Deputy leaders (for a party with no co-leaders)
Each member of Parliament who is the deputy leader of a party—
4
Parliamentary Salaries and Allowances Determination
2024/121
2024
Schedule 1
Yearly rate of
Office
salary payable ($)
with less than 5 members in the House of Representatives
184,700
or
with 5 or more members in the House of Representatives
187,600
or
with 10 or more members in the House of Representatives
203,300
or
with 25 or more members in the House of Representatives
219,800
Whips
One Whip for a party—
with 5 or more members in the House of Representatives
187,600
or
with 10 or more members in the House of Representatives
203,300
or
with 25 or more members in the House of Representatives
219,800
or
The Whip who is designated the Senior Government Whip
227,900
and
One Junior Whip for a party with 25 or more members in the House of
184,700
Representatives
and
One further Junior Whip for a party with 45 or more members in the House of
184,700
Representatives
and
One further Junior Whip for a party with 65 or more members in the House of
184,700
Representatives
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee
184,700
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select
173,700
committee
Other members of Parliament
All other office holders
168,600
Each ordinary member of Parliament
168,600
Part 2
Salaries payable 1 July 2024 to 30 June 2025
Yearly rate of
Office
salary payable ($)
Members of the Executive
Prime Minister
498,300
Deputy Prime Minister
354,100
Each member of the Executive Council who is a Minister of the Crown holding
313,100
1 or more portfolios and who is a member of Cabinet
5
Parliamentary Salaries and Allowances Determination
Schedule 1
2024
2024/121
Yearly rate of
Office
salary payable ($)
Each member of the Executive Council who is a Minister of the Crown holding
264,300
1 or more portfolios but who is not a member of Cabinet
Each other member of the Executive Council
230,300
Each Parliamentary Under-Secretary
205,600
Officers of the House of Representatives
Speaker
313,100
Deputy Speaker
221,600
Each Assistant Speaker
190,100
Leader of the Opposition
Leader of the Opposition
302,300
Other party leaders
Each member of Parliament who is the leader of a party—
with less than 5 members in the House of Representatives
201,100
or
with 5 or more members in the House of Representatives
208,400
or
with 10 or more members in the House of Representatives
224,600
or
with 25 or more members in the House of Representatives
239,200
Each member of Parliament who is the co-leader of a party (
limited to a
maximum of 2 co-leaders per party)—
with less than 5 members in the House of Representatives
195,600
or
with 5 or more members in the House of Representatives
200,700
or
with 10 or more members in the House of Representatives
216,900
or
with 25 or more members in the House of Representatives
232,700
Deputy leaders (for a party with no co-leaders)
Each member of Parliament who is the deputy leader of a party—
with less than 5 members in the House of Representatives
190,100
or
with 5 or more members in the House of Representatives
193,100
or
with 10 or more members in the House of Representatives
209,200
or
with 25 or more members in the House of Representatives
226,200
Whips
One Whip for a party—
with 5 or more members in the House of Representatives
193,100
or
with 10 or more members in the House of Representatives
209,200
or
6
Parliamentary Salaries and Allowances Determination
2024/121
2024
Schedule 1
Yearly rate of
Office
salary payable ($)
with 25 or more members in the House of Representatives
226,200
or
The Whip who is designated the Senior Government Whip
234,500
and
One Junior Whip for a party with 25 or more members in the House of
190,100
Representatives
and
One further Junior Whip for a party with 45 or more members in the House of
190,100
Representatives
and
One further Junior Whip for a party with 65 or more members in the House of
190,100
Representatives
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee
190,100
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select
178,800
committee
Other members of Parliament
All other office holders
173,400
Each ordinary member of Parliament
173,400
Part 3
Salaries payable 1 July 2025 to 30 June 2026
Yearly rate of
salary payable
Office
($)
Members of the Executive
Prime Minister
510,300
Deputy Prime Minister
362,600
Each member of the Executive Council who is a Minister of the Crown holding 1 or
320,600
more portfolios and who is a member of Cabinet
Each member of the Executive Council who is a Minister of the Crown holding 1 or
270,600
more portfolios but who is not a member of Cabinet
Each other member of the Executive Council
235,800
Each Parliamentary Under-Secretary
210,600
Officers of the House of Representatives
Speaker of the House of Representatives
320,600
Deputy Speaker
226,900
Each Assistant Speaker
194,700
Leader of the Opposition
Leader of the Opposition
305,900
Other party leaders
Each member of Parliament who is the leader of a party—
7
Parliamentary Salaries and Allowances Determination
Schedule 1
2024
2024/121
Yearly rate of
salary payable
Office
($)
with less than 5 members in the House of Representatives
205,900
or
with 5 or more members in the House of Representatives
213,400
or
with 10 or more members in the House of Representatives
230,000
or
with 25 or more members in the House of Representatives
244,900
Each member of Parliament who is the co-leader of a party (
limited to a maximum
of 2 co-leaders per party)—
with less than 5 members in the House of Representatives
200,300
or
with 5 or more members in the House of Representatives
205,600
or
with 10 or more members in the House of Representatives
222,100
or
with 25 or more members in the House of Representatives
238,300
Deputy leaders (for a party with no co-leaders)
Each member of Parliament who is the deputy leader of a party—
with less than 5 members in the House of Representatives
194,700
or
with 5 or more members in the House of Representatives
197,700
or
with 10 or more members in the House of Representatives
214,300
or
with 25 or more members in the House of Representatives
231,600
Whips
One Whip for a party—
with 5 or more members in the House of Representatives
197,700
or
with 10 or more members in the House of Representatives
214,300
or
with 25 or more members in the House of Representatives
231,600
or
The Whip who is designated the Senior Government Whip
240,100
and
One Junior Whip for a party with 25 or more members in the House of
194,700
Representatives
and
One further Junior Whip for a party with 45 or more members in the House of
194,700
Representatives
and
One further Junior Whip for a party with 65 or more members in the House of
194,700
Representatives
8
Parliamentary Salaries and Allowances Determination
2024/121
2024
Schedule 1
Yearly rate of
salary payable
Office
($)
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee
194,700
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select committee
183,100
Other members of Parliament
All other office holders
177,600
Each ordinary member of Parliament
177,600
Part 4
Salaries payable 1 July 2026 to polling day for next general election
Yearly rate of
Office
salary payable ($)
Members of the Executive
Prime Minister
520,500
Deputy Prime Minister
369,800
Each member of the Executive Council who is a Minister of the Crown holding
327,100
1 or more portfolios and who is a member of Cabinet
Each member of the Executive Council who is a Minister of the Crown holding
276,000
1 or more portfolios but who is not a member of Cabinet
Each other member of the Executive Council
240,500
Each Parliamentary Under-Secretary
214,800
Officers of the House of Representatives
Speaker of the House of Representatives
327,100
Deputy Speaker
231,400
Each Assistant Speaker
198,600
Leader of the Opposition
Leader of the Opposition
309,000
Other party leaders
Each member of Parliament who is the leader of a party—
with less than 5 members in the House of Representatives
210,000
or
with 5 or more members in the House of Representatives
217,700
or
with 10 or more members in the House of Representatives
234,600
or
with 25 or more members in the House of Representatives
249,800
Each member of Parliament who is the co-leader of a party (
limited to a
maximum of 2 co-leaders per party)—
with less than 5 members in the House of Representatives
204,300
or
with 5 or more members in the House of Representatives
209,700
or
9
Parliamentary Salaries and Allowances Determination
Schedule 1
2024
2024/121
Yearly rate of
Office
salary payable ($)
with 10 or more members in the House of Representatives
226,600
or
with 25 or more members in the House of Representatives
243,000
Deputy leaders (for a party with no co-leaders)
Each member of Parliament who is the deputy leader of a party—
with less than 5 members in the House of Representatives
198,600
or
with 5 or more members in the House of Representatives
201,600
or
with 10 or more members in the House of Representatives
218,500
or
with 25 or more members in the House of Representatives
236,200
Whips
One Whip for a party—
with 5 or more members in the House of Representatives
201,600
or
with 10 or more members in the House of Representatives
218,500
or
with 25 or more members in the House of Representatives
236,200
or
The Whip who is designated the Senior Government Whip
244,900
and
One Junior Whip for a party with 25 or more members in the House of
198,600
Representatives
and
One further Junior Whip for a party with 45 or more members in the House of
198,600
Representatives
and
One further Junior Whip for a party with 65 or more members in the House of
198,600
Representatives
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee
198,600
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select
186,700
committee
Other members of Parliament
All other office holders
181,200
Each ordinary member of Parliament
181,200
10
link to page 2
Parliamentary Salaries and Allowances Determination
2024/121
2024
Schedule 2
Schedule 2
Allowances payable under section 8 of Members of Parliament
(Remuneration and Services) Act 2013
cl 6
Part 1
Basic expense allowances payable under section 8 of Members of
Parliament (Remuneration and Services) Act 2013 for periods
specified in clause 6(1)
Subpart 1—Basic expense allowance for 15 October 2023 to 30 June
2024
Annual allowance
Office
payable ($)
Prime Minister
23,800
Speaker
22,300
Each other member of Parliament
17,900
Subpart 2—Basic expense allowance for 1 July 2024 to 30 June 2025
Annual allowance
Office
payable ($)
Prime Minister
24,800
Speaker
23,100
Each other member of Parliament
18,600
Subpart 3—Basic expense allowance for 1 July 2025 to 30 June 2026
Annual allowance
Office
payable ($)
Prime Minister
25,300
Speaker
23,600
Each other member of Parliament
19,000
Subpart 4—Basic expense allowance for 1 July 2026 to polling day for
next general election
Annual allowance
Office
payable ($)
Prime Minister
25,600
Speaker
24,000
Each other member of Parliament
19,300
11
Parliamentary Salaries and Allowances Determination
Schedule 2
2024
2024/121
Part 2
Office-holder allowances payable under section 8 of Members of
Parliament (Remuneration and Services) Act 2013 for periods
specified in clause 6(3)
Subpart 1—Daily allowance for 15 October 2023 to 30 June 2024
Daily allowance
Office
payable ($)
Temporary Speaker (per sitting day)
72
Subpart 2—Daily allowance for 1 July 2024 to 30 June 2025
Daily allowance
Office
payable ($)
Temporary Speaker (per sitting day)
74
Subpart 3—Daily allowance for 1 July 2025 to 30 June 2026
Daily allowance
Office
payable ($)
Temporary Speaker (per sitting day)
76
Subpart 4—Daily allowance for 1 July 2026 to polling day for next
general election
Daily allowance
Office
payable ($)
Temporary Speaker (per sitting day)
77
Dated at Wellington this 4th day of June 2024.
Geoff Summers,
Chairperson.
Dallas Welch,
Member.
Vern Walsh,
Member.
12
link to page 13
Parliamentary Salaries and Allowances Determination
Explanatory
2024/121
2024
memorandum
Explanatory memorandum
This memorandum is not part of the determination but is intended to indicate its
general effect.
Under
section 19(6) of the Remuneration Authority Act 1977 (the
Act), the Remuner‐
ation Authority (the
Authority) must begin a review of the salaries and allowances of
the members of Parliament (
MPs) within 3 months from the return of the writ after
the 2023 General Election.1 The writ was returned on 16 November 2023.
The Authority must, under the Act, link its review to the electoral cycle, so that its
subsequent determination sets out MPs’ salaries and allowances for the entire term of
Parliament in 4 tranches. For the current Parliament, the periods for which MPs’ sal‐
aries and allowances must be set are—
Current year
(a)
the period beginning on the day after polling day (15 October 2023) and ending
on 30 June 2024; and
Out-years
(b)
the period beginning on 1 July 2024 and ending on 30 June 2025; and
(c)
the period beginning on 1 July 2025 and ending on 30 June 2026; and
(d)
the period beginning on 1 July 2026 and ending on polling day for the next
general election.
Green-fields review
Since no full review of MPs’ salaries and allowances had been completed for over 20
years and MPs had received no adjustments to their salaries and allowances since
2017, the Authority took a green-fields approach to the review, which began immedi‐
ately after the return of the writ.
The Authority completed the review in several distinct stages and, as required under
the Act, based it on the information that was available to the Authority at the time of
the review.
At the start of the review, the Authority engaged a student from the University of
Canterbury’s Master of Applied Data Science programme to evaluate the suitability
of using long-term forecasts from 1 July 2024 onwards, such as the Labour Cost
Index (
LCI), average wage, New Zealand Consumers Price Index (
CPI), and other
labour market and economic indicators, to inform its decisions on MPs’ salaries and
allowances. The report of the evaluation substantially agreed with the forecasters’
1
Remuneration Authority,
Review of Members of Parliament Salaries and Allowances 2023/24,
30 April 2024. A copy of the report is available on the Authority’s website.
13
link to page 14 link to page 14
Explanatory
Parliamentary Salaries and Allowances Determination
memorandum
2024
2024/121
own advice to treat their figures with caution, especially the longer
-range forecasts.2
Significant research was undertaken on identifying and comparing the remuneration
received by New Zealand MPs with the members of Australia’s House of Representa‐
tives, Canada’s House of Commons, Ireland’s Dáil Éireann (Lower House), and the
United Kingdom’s House of Commons. Those countries were identified as having
parliamentary systems that are most closely comparable to New Zealand, but with
some substantial differences. Information about the salaries of Australian States and
Territories’ MPs was also used for comparative purposes. Labour market and eco‐
nomic data including forecasts were gathered to inform the review. Comparisons were
also made between New Zealand MPs’ remuneration and the remuneration received
by senior executives, middle managers, and technical specialists in both the private
and public sectors and with remuneration (average wage and wage growth (LCI))
received in the wider economy.
As no “job descriptions” exist for MPs’ roles, the Authority had to glean information
on the various positions from a wide range of sources including
McGee Parliamen‐
tary Practice in New Zealand,
3 the New Zealand Parliament website, the Cabinet
Manual 2023, and the Standing Orders of the House of Representatives (17 October
2023).
Principles and criteria
To assist its review, the Authority agreed on the following principles with regard to
MPs:
•
salaries and allowances are related solely to the office and not to the person:
•
roles are full time and it is assumed that MPs have no other income:
•
MPs undertake their roles with a sense of public service:
•
MPs have family commitments, and the sacrifices MPs and their families make
in their enjoyment of leisure and family life would be considered:
•
salaries and allowances should assist with the attraction and retention of MPs
who represent the diversity of New Zealand society and support a culture of
inclusion in an MMP Parliament.
These 5 principles augmented the following criteria that the Authority is required, by
the Act, to consider when reviewing and determining MPs’ remuneration:
•
fair relativity with the levels of remuneration received elsewhere:
2
Jingcheng Zhou,
Forecasting New Zealand Members of Parliament Salaries: An Analysis of
Predictive Models and Economic Forecasts Reliability (Masters Research Project, University of
Canterbury, 2024). A copy of the report is available on the Authority’s website.
3
McGee Parliamentary Practice in New Zealand (fifth edition), edited by David Wilson and
David Bagnall, 2023.
14
link to page 15
Parliamentary Salaries and Allowances Determination
Explanatory
2024/121
2024
memorandum
•
the need to be fair both to the individuals whose pay is being set and to the tax‐
payer:
•
the need to recruit (attract) and retain competent individuals:
•
the requirements of the job:
•
a comparison between the conditions of service enjoyed by the persons whose
remuneration is being determined and comparable other persons or groups.
Countervailing economic conditions
The Authority sought to understand whether there were any “prevailing adverse eco‐
nomic conditions, based on evidence from an authoritative source”
4 that would have
led the Authority to determine remuneration at a rate lower than it would have other‐
wise. From the information it obtained from authoritative sources (the Reserve Bank
of New Zealand and the Treasury), the Authority formed the view that there is not a
compelling case that meets the test implied in
section 18A(2) of the Act; although the
Authority decided that prudence was required to be exercised in its decisions on mak‐
ing this determination.
Salary determination
After taking the above into account and considering the submissions received, the
Authority determined that the annual salary for an ordinary MP would be $168,600
per annum (rounded) for the period beginning on 15 October 2023 and ending on
30 June 2024.
For the out-years salaries, the Authority’s decisions were informed by forecasted
movements in the LCI, which were prudently discounted. Forecasters advised the
Authority to treat their figures with caution, a conclusion that was reinforced by the
research the Authority had commissioned.
The Authority decided to maintain the ratios between the salary of an ordinary MP
and the salaries of the Prime Minister, Ministers, and most other positions with addi‐
tional responsibilities as paid under previous determinations. The only positions
where different decisions were made were those of the Leader of the Opposition,
party leaders, deputy leaders, co-leaders, and party whips.
The Leader of the Opposition is an important constitutional office and takes prece‐
dence on the Opposition side of the House of Representatives (the
House) in major
parliamentary debates. However, the Authority received submissions during the past
few years that implied that the position of Leader of the Opposition does not represent
or lead in any way the other opposition parties in Parliament and does not have any
influence over their views. The Authority believes that MMP has caused the nature of
this leadership role to change and that its salary relative to other party leaders is over‐
stated. The Authority thinks that the gap should narrow, possibly significantly. How‐
4
Section 18A(2)(a) of the Remuneration Authority Act 1977.
15
Explanatory
Parliamentary Salaries and Allowances Determination
memorandum
2024
2024/121
ever, the extent of that change is not yet clear. As a first step, the Authority decided to
increase the Leader of the Opposition salary by a lesser amount than for other party
leaders. The Authority will further investigate and address this issue in its review fol‐
lowing the next general election and will call for specific submissions on this topic at
that time.
This outcome of the review and this determination has introduced a more straightfor‐
ward and comprehensible structure to recognise the roles of party leaders, deputy
leaders, co-leaders, and whips in parties of differing sizes. There are now fewer
ranges, with a fixed payment within each range.
This determination provides, for the first time, the salary for a party co-leader. The
Authority decided that co-leaders should be paid half the sum of the salaries that
apply to a party leader and a deputy leader. Note that there can only be 2 co-leaders
paid per party and a party may not pay co-leaders and pay a deputy leader under this
determination. This means that the total leadership cost is the same for parties of a
similar size irrespective of leadership structure and ensures that remuneration does
not drive those structure decisions.
In setting the new remuneration structure, no position was disadvantaged when com‐
pared to what it may previously have been paid, and the relativity between each pos‐
ition was generally maintained where appropriate. Irrespective of this objective,
sec‐
tion 24 of the Act prevents any person from receiving a lower rate of remuneration
than they are already receiving.
The increase in the ordinary MP’s salary of $168,600 for the current year (15 October
2023 to 30 June 2024) is 2.8%. For those other positions where the ratio to an ordin‐
ary MP’s salary has been maintained, the increase is also 2.8%.
For the out-years for all positions, an increase of 2.9% was determined for the 1 July
2024 to 30 June 2025 year, an increase of 2.4% was determined for the 1 July 2025 to
30 June 2026 year, and an increase of 2.0% was determined for 1 July 2026 to the
polling day for the next general election.
Statement of personal benefit and potential personal benefit
Section 16(2)(c) of the Members of Parliament (Remuneration and Services) Act
2013 (the
MOP Act) requires the Authority to include in this determination a state‐
ment on how it has assessed the value of personal benefit and potential personal bene‐
fit of entitlements to a service covered by a determination made by the Authority
under
section 17 of the MOP Act, the directions and determinations issued by the
Speaker of the House (the
Speaker) under
sections 23 and
34 of the MOP Act, or a
determination made by the Minister Responsible for Ministerial Services (the
Minis‐
ter) under section 27 of the MOP Act.
In assessing the value of the benefits, the Authority took into account—
•
an assessment of the proportion of total cost associated with a service that is
subject to fringe benefit tax; and
16
Parliamentary Salaries and Allowances Determination
Explanatory
2024/121
2024
memorandum
•
that the information supplied to the Authority on the services provided to MPs
for the 2021/22 and 2022/23 years was impacted by the COVID-19 pandemic,
eg through the curtailing of travel; and
•
the need to support a family-friendly Parliament; and
•
the need to be fair to all MPs including those MPs who do not have partners or
a family or make little use of the benefits available; and
•
the need to be fair to the taxpayers.
A number of items were assessed as having a zero value because the Authority con‐
sidered them to be tools of trade or only available if used on Ministerial business or
for a parliamentary purpose.
Employment benefits of comparator roles in both public sector and private sector
organisations were studied to understand the value of the benefits available to those
roles. The Authority noted that the nature of the benefits received by those in compa‐
rator roles may differ from those received by MPs. There was also a wide variation
within the data for the comparator roles of the value of benefits received. After scruti‐
nising the available benefit data, the Authority concluded that the typical values for
comparator roles were around $3,500 to $5,000, with the highest benefit value being
about $24,000 and zero being the lowest benefit value.
The Authority recognised that some MPs receive a greater share of the value of the
services available to them by making more use of their entitlements and having a
greater proportion of their costs reimbursed compared to other MPs. However
, section
17A of the Act and
section 16 of the MOP Act require the Authority to consider both
the personal benefit and potential personal benefit for MPs, Ministers, or their family
members irrespective of the proportion of services they use. Therefore, the values of
the personal benefits or potential personal benefits have been set conservatively as no
compensating adjustment can be made for MPs who are not making use of a service.
Accordingly, the Authority has assessed the value of the overall personal benefits or
potential personal benefits at,—
•
for members of the Executive but excluding Parliamentary Under-Secretaries,
and for the Speaker and Deputy Speaker but excluding Assistant and Tempor‐
ary Speakers, and for the Leader of Opposition, $15,200 per annum for the cur‐
rent parliamentary term; and
•
for all other members of the House, $6,300 per annum for the current parlia‐
mentary term.
Basic expense allowance
Since 2002, MPs have been entitled to a tax-free basic expense allowance intended to
cover out-of-pocket expenses that arise from that recipient’s official duties and any
activity undertaken by the recipient for a parliamentary purpose. The allowance may
include the following:
•
entertainment of visitors, staff, constituents, and officials:
17
Explanatory
Parliamentary Salaries and Allowances Determination
memorandum
2024
2024/121
•
fees, including memberships and sponsorships:
•
koha, donations, and raffle tickets:
•
gifts and prizes:
•
flowers (excluding wreaths for public commemorative events):
•
passport photos:
•
briefcases and luggage:
•
meals.
The Authority concluded, in its green-fields review of MPs’ salaries and allowances,
that a modest basic expense allowance should continue to be provided to MPs. The
purpose of the allowance is to contribute to MPs’ minor out-of-pocket expenses asso‐
ciated with any activity they undertake for a parliamentary purpose and that cannot
easily or conveniently be itemised for reimbursement.
Statistics New Zealand’s CPI is the most relevant indicator of movements in the price
of goods and services that is publicly available. After considering the annual changes
in the CPI, both actual and forecasted, the basic expense allowance has been adjusted
(lower than the actual and forecasted movements) in the determination for each of the
following periods:
•
for the current year (15 October 2023 to 30 June 2024), by 5.5% (Statistics
New Zealand reported an annual movement to the CPI of 6.0% for the June
2023 quarter):
•
for the period beginning on 1 July 2024 and ending on 30 June 2025, by 3.8%
(forecasts predict an annual inflation rate of 4.2% for the 2023/24 year):
•
for the period beginning on 1 July 2025 and ending on 30 June 2026, by 2.0%
(forecasts predict an annual inflation rate of 2.4% for the 2024/25 year); and
•
for the period beginning on 1 July 2026 and ending on polling day for the next
general election, by 1.5% (forecasts predict an annual inflation rate of 2.1% for
the 2025/26 year).
The previous year actual or forecast rates were used to inform the adjustments to the
allowances for the following years.
The Authority consulted the Inland Revenue Department (
Inland Revenue) on the
basic expense allowance. Inland Revenue has confirmed that the allowance will
remain tax free.
Temporary Speaker (office-holder) allowance
The Authority was requested to consider remunerating MPs who may be asked by the
Speaker, while presiding over the House, to take the Chair as Temporary Speaker. The
2023 Standing Orders of the House describe the role of Temporary Speaker as per‐
forming the duties and exercising the authority of the Speaker while presiding over
the House.
18
link to page 2 link to page 12
Parliamentary Salaries and Allowances Determination
Explanatory
2024/121
2024
memorandum
Accordingly, the Authority has determined a daily allowance for MPs who perform
the role of Temporary Speaker. The daily allowance is paid in addition to the salary
the MPs receive under
clause 5 of this determination. The daily allowance is specified
in Part 2 of Schedule 2 of the determination.
Consultation
To meet its legislative requirements under
section 17A the Act, the Authority consul‐
ted the Speaker and the Minister on any element of personal benefit or potential per‐
sonal benefit. The Authority also consulted the Commissioner of Inland Revenue on
the tax consequences before making this determination.
In addition to meeting its legislative requirements, the Authority sought submissions
from all MPs and a selected list of individuals and organisations who had a good
understanding of Parliament and could provide an opinion on the role and remuner‐
ation of MPs. The Authority also received submissions from a small number of inter‐
est groups and members of the public. All submissions received were considered by
the Authority when making this determination.
Effective date
As required under the Act, this determination is deemed to be effective from 15 Octo‐
ber 2023 and will expire at the end of polling day for the next general election.
Issued under the authority of the
Legislation Act 2019.
Date of notification in
Gazette: 7 June 2024.
Wellington, New Zealand:
Published under the authority of the New Zealand Government—2024
19
