Parliamentary Salaries and Allowances Determination 2017

2017/262

Coat of Arms of New Zealand

Parliamentary Salaries and Allowances Determination 2017

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 2017.

2 Commencement

This determination is deemed to have come into force on 1 July 2017.

3 Expiry

This determination expires on 30 June 2018.

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.

7 Revocation

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 2017 ($)
Members of the Executive
Prime Minister471,049
Deputy Prime Minister334,734
Each member of the Executive Council who is a Minister of the Crown holding 1 or more portfolios and who is a member of Cabinet296,007
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 Cabinet249,839
Each other member of the Executive Council217,676
Each Parliamentary Under-Secretary194,374
Officers of the House of Representatives
Speaker of the House of Representatives296,007
Deputy Speaker209,471
Each Assistant Speaker179,713
Leader of the Opposition
Leader of the Opposition296,007
Other party leaders
Each member of Parliament who is the leader of a party—
Base salary179,713
plus
For each additional member of the party in the House of Representatives up to a maximum of 52,138
plus
For each additional member of the party in the House of Representatives over 5 up to a maximum of 231,430
plus
For each additional member of the party in the House of Representatives over 23709
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 salary206,627
plus
For each additional member of the party in the House of Representatives over 25 up to a maximum of 35710
plus
For each additional member of the party in the House of Representatives over 35 up to a maximum of 45410
Whips
In respect of each party whose members in the House of Representatives number not less than 4—
One Whip
Base salary179,713
plus
For each member of the party in the House of Representatives over 6 up to a maximum of 241,430
plus
For each member of the party in the House of Representatives over 24 up to a maximum of 35709
plus
For each member of the party in the House of Representatives over 35 up to a maximum of 45410
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 added5,108
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)179,713
In respect of each party whose members in the House of Representatives number not less than 45—
One Additional Junior Whip179,713
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee179,713
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select committee168,992
Other members of Parliament
Each other member of Parliament163,961

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 2017 ($)
Prime Minister22,606
Speaker21,136
Each other member of Parliament16,980

Dated at Wellington this 25th day of August 2017.

Fran Wilde,
Chairperson.

Geoff Summers,
Member.

Len Cook,
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 Statistics New Zealand’s Labour Market Statistics 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 2016 and 2017 was 2.46%. 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 2016, added together and divided by 4 ($1,393.61); 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 2017, added together and divided by 4 ($1,427.86).

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 during the year ended 30 June 2017 have been assessed as nil.

4

The change in QES has been applied according to the formula in the Remuneration Authority Act 1977. With a nil change in the amount of personal benefit or potential personal benefit arising from any changes to entitlements during the past year, this has resulted in salary increases of 2.46%.

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 2017 (1.7%).

6

As required by section 17A of the Remuneration Authority Act 1977, the Authority consulted with the Speaker of the House of Representatives, the Minister responsible for Ministerial Services, and the Commissioner of Inland Revenue before finalising this determination.

7

This determination is effective from 1 July 2017 and expires on 30 June 2018. As the QES information for the year ended 30 June 2017 that is required for the formula was released on 2 August 2017, the determination could not be finalised earlier.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 31 August 2017.