Parliamentary Salaries and Allowances Determination 2016

2016/252

Coat of Arms of New Zealand

Parliamentary Salaries and Allowances Determination 2016

Pursuant to section 8 of the Members of Parliament (Remuneration and Services) Act 2013 and to the Remuneration Authority Act 1977, the Remuneration Authority makes the following determination (to which is appended an explanatory memorandum).

Determination

1 Title

This determination is the Parliamentary Salaries and Allowances Determination 2016.

2 Commencement

This determination is deemed to have come into force on 1 July 2016.

3 Expiry

This determination expires on 30 June 2017.

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 candidate for that party

select committee means a committee that is established by, or in accordance with,—

(a)

Standing Order 184(1) or (2) of the Standing Orders of the House of Representatives (with effect on 15 August 2014); 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 (Remuneration and Services) Act 2013 are set out in 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 allowances payable under section 8 of the Members of Parliament (Remuneration and Services) Act 2013 are set out in Schedule 2.

(2)

An allowance is paid to the recipient for the purpose of reimbursing the recipient for expenses that arise from that recipient’s official and parliamentary duties and that are not otherwise covered by the determinations made under the Members of Parliament (Remuneration and Services) Act 2013.

Schedule 1 Salaries payable under section 8 of Members of Parliament (Remuneration and Services) Act 2013

cl 5(1)

OfficeYearly rate of salary payable on and after 1 July 2016 ($)
Members of the Executive
Prime Minister459,739
Deputy Prime Minister326,697
Each member of the Executive Council who is a Minister of the Crown holding 1 or more portfolios and who is a member of Cabinet288,900
Each member of the Executive Council who is a Minister of the Crown holding 1 or more portfolios, but who is not a member of Cabinet243,841
Each other member of the Executive Council212,450
Each Parliamentary Under-Secretary189,707
Officers of the House of Representatives
Speaker of the House of Representatives288,900
Deputy Speaker204,442
Each Assistant Speaker175,398
Leader of the Opposition
Leader of the Opposition288,900
Other party leaders
Each member of Parliament who is the leader of a party—
Base salary175,398
plus
For each additional member of the party in the House of Representatives up to a maximum of 52,087
plus
For each additional member of the party in the House of Representatives over 5 up to a maximum of 231,395
plus
For each additional member of the party in the House of Representatives over 23692
Deputy leaders
Each member of Parliament who is the deputy leader of a party whose members in the House of Representatives number not less than 25—
Base salary201,666
plus
For each additional member of the party in the House of Representatives over 25 up to a maximum of 35693
plus
For each additional member of the party in the House of Representatives over 35 up to a maximum of 45400
Whips
In respect of each party whose members in the House of Representatives number not less than 4—
One Whip
Base salary175,398
plus
For each member of the party in the House of Representatives over 6 up to a maximum of 241,395
plus
For each member of the party in the House of Representatives over 24 up to a maximum of 35692
plus
For each member of the party in the House of Representatives over 35 up to a maximum of 45400
Senior Government Whip
If a Whip referred to in one of the provisions under the heading Whips is also the Senior Government Whip, an additional sum is added4,985
In respect of each party whose members in the House of Representatives number not less than 25—
One Junior Whip (separate from, and additional to, that party’s One Whip)175,398
In respect of each party whose members in the House of Representatives number not less than 45—
One Additional Junior Whip175,398
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee175,398
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select committee164,935
Other members of Parliament
Each other member of Parliament160,024

Schedule 2 Allowances payable under section 8 of Members of Parliament (Remuneration and Services) Act 2013

cl 6(1)

OfficeYearly rate of expenses allowance payable on and after 1 July 2016 ($)
Prime Minister22,229
Speaker20,783
Each other member of Parliament16,697

Dated at Wellington this 25th day of October 2016.

Fran Wilde,
Chairperson.

Geoff Summers,
Member.

Explanatory memorandum

This memorandum is not part of the determination, but is intended to indicate its general effect.
1

The Remuneration Authority Act 1977 requires the Remuneration Authority (the Authority) to set remuneration for members of Parliament by—

  • reference to the change in ordinary time weekly earnings for full-time equivalent (FTE) employees in the public sector as determined by the Quarterly Employment Survey (QES); and

  • the amount of any change in the personal benefit or potential personal benefit that the Authority is required to take into account under section 16(2)(b) of the Members of Parliament (Remuneration and Services) Act 2013.

The formula to be used is set out in section 18B of the Remuneration Authority Act 1977.

2

The change in the ordinary time weekly earnings for FTE employees in the public sector between 2015 and 2016 was 2.49%. This is calculated by comparing—

  • the average ordinary time weekly earnings for FTE employees in the public sector as determined by the QES for each of the 4 quarters of the period ending 30 June 2015, added together and divided by 4 ($1,359.81); and

  • the average ordinary time weekly earnings for FTE employees in the public sector as determined by the QES for each of the 4 quarters of the period ending 30 June 2016, added together and divided by 4 ($1,393.61).

3

The changes in amounts of personal benefit or potential personal benefit arising from any changes in entitlements as a result of a determination made by the Authority, directions issued by the Speaker, or a determination made by the Minister Responsible for Ministerial Services under the Members of Parliament (Remuneration and Services) Act 2013 have been assessed as follows:

(a)

Members’ and Executive New Zealand travel

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(b)

Executive self-drive cars

Included in this heading are self-drive cars for the Speaker, Deputy Speaker, and Leader of the Opposition.

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(c)

Chauffeur-driven cars

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(d)

Spouses’ and partners’ New Zealand travel

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(e)

Dependants’ New Zealand travel

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(f)

Members’ Wellington accommodation

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(g)

Members’ accommodation outside Wellington

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(h)

Home base security

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(i)

Information and communications technology

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

4

The change in QES has been applied according to the formula in the Remuneration Authority Act 1977. This results in salary increases of 2.49%.

5

Since 2002, members have been entitled to a tax-free allowance intended to cover out-of-pocket expenses incurred in the pursuit of parliamentary business, which may include—

(a)

the entertainment of visitors, staff, constituents, and officials; and

(b)

memberships, sponsorships, and fees; and

(c)

koha; and

(d)

donations and raffle tickets; and

(e)

gifts and prizes; and

(f)

flowers (excluding wreaths for public commemorative events); and

(g)

passport photos; and

(h)

briefcases and luggage; and

(i)

meals.

This allowance has, as in previous years, been increased by the New Zealand Consumers Price Index movement to 30 June 2016 (0.4%).

6

This determination is effective from 1 July 2016 and expires on 30 June 2017. The determination could not be finalised earlier because of the preparatory work that the Authority was required to undertake before making the determination.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 3 November 2016.