Parliamentary Salaries and Allowances Determination 2020

Determination

1 Title

This determination is the Parliamentary Salaries and Allowances Determination 2020.

2 Commencement

This determination is deemed to have come into force on 1 July 2019.

3 Expiry

This determination expires at the end of polling day for the next general election.

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 23 August 2017); 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 2019 ($)
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 2019 ($)
Prime Minister22,606
Speaker21,136
Each other member of Parliament16,980

Dated at Wellington this 8th day of June 2020.

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.

The Remuneration Authority (Members of Parliament Remuneration) Amendment Act 2019 (the Amendment Act) reversed the changes made in 2015 that established a formula for calculating the remuneration of members of Parliament (MPs). It also removed a spent provision that in 2018 was inserted into the Remuneration Authority Act 1977 (the Act) to freeze MPs’ remuneration for the period 1 July 2018 to 30 June 2019 at the levels determined in the Parliamentary Salaries and Allowances Determination 2017.

The Amendment Act also restored the criteria-based discretion of the Remuneration Authority (the Authority) to determine the salaries and allowances of MPs and equipped the Authority with the flexibility to take into account changing economic circumstances.

The Amendment Act requires that, as soon as practicable after its commencement, the Authority must issue a determination covering salaries and allowances of MPs for the period 1 July 2019 to polling date for the next general election.

The criteria that the Authority must have regard to when making a determination are listed in sections 18 and 18A of the Act and include the criterion that the Authority must take into account prevailing adverse economic conditions, which is important at this time.

COVID-19 has created a rapidly changing environment that is having an immediate and unprecedented impact on the New Zealand economy, but the impact is difficult to measure at this early stage. The Treasury recently published scenarios showing the possible economic impacts of COVID-19 on New Zealand under different circumstances. It is likely that economic and labour market figures and statistics published for the March 2020 quarter will largely reflect conditions before New Zealand went into the COVID-19 Level 4 lockdown, so the Authority will not know the extent of the downturn until the figures for the June 2020 quarter are published.

Therefore, the Authority has decided to maintain the salaries and allowances of MPs at their 2017 levels until the expiry of this determination at the next general election.

However, the recently enacted Remuneration Authority (COVID-19 Measures) Amendment Act 2020 has changed the Act to enable the Authority to reduce parliamentary remuneration by up to 20% for a defined period of time. As a result of this, the Authority will issue an amendment to this determination in the near future.

Since 2002, MPs 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—

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

  • memberships, sponsorships, and fees; and

  • koha; and

  • donations and raffle tickets; and

  • gifts and prizes; and

  • flowers (excluding wreaths for public commemorative events); and

  • passport photos; and

  • briefcases and luggage; and

  • meals.

No change has been made to this allowance.

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

This determination is effective from 1 July 2019 and expires at the end of polling day for the next general election.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 11 June 2020.