Parliamentary Salaries and Allowances (Temporary Reduction—COVID-19) Determination 2020

2020/114

Coat of Arms of New Zealand

Parliamentary Salaries and Allowances (Temporary Reduction—COVID-19) Determination 2020

Pursuant to sections 12 and 19A of the Remuneration Authority Act 1977 and to section 8 of the Members of Parliament (Remuneration and Services) Act 2013, 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 (Temporary Reduction—COVID-19) Determination 2020.

2 Commencement

This determination comes into force on 9 July 2020.

3 Original determination

This determination applies to the Parliamentary Salaries and Allowances Determination 2020 (the original determination).

4 Temporary reduction of salaries

While this determination is in force, the salaries specified in Schedule 1 of the original determination must be read as if they were the salaries set out in the Schedule of this determination.

5 Expiry

This determination expires on 6 January 2021.

Schedule Adjusted salaries payable under section 8 of Members of Parliament (Remuneration and Services) Act 2013

cl 4

OfficeTemporarily reduced salaries payable from 9 July 2020 to 6 January 2021 ($)
Members of the Executive
Prime Minister376,840
Deputy Prime Minister267,788
Each member of the Executive Council who is a Minister of the Crown holding 1 or more portfolios and who is a member of Cabinet236,806
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 Cabinet199,872
Each other member of the Executive Council185,025
Each Parliamentary Under-Secretary165,218
Officers of the House of Representatives
Speaker of the House of Representatives236,806
Deputy Speaker178,051
Each Assistant Speaker161,742
Leader of the Opposition
Leader of the Opposition236,806
Other party leaders
Each member of Parliament who is the leader of a party—
Base salary161,742
plus
For each additional member of the party in the House of Representatives up to a maximum of 51,925
plus
For each additional member of the party in the House of Representatives over 5 up to a maximum of 231,287
plus
For each additional member of the party in the House of Representatives over 23639
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 salary185,965
plus
For each additional member of the party in the House of Representatives over 25 up to a maximum of 35639
plus
For each additional member of the party in the House of Representatives over 35 up to a maximum of 45369
Whips
In respect of each party whose members in the House of Representatives number not less than 4—
One Whip
Base salary161,742
plus
For each member of the party in the House of Representatives over 6 up to a maximum of 241,287
plus
For each member of the party in the House of Representatives over 24 up to a maximum of 35639
plus
For each member of the party in the House of Representatives over 35 up to a maximum of 45369
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 added4,597
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)161,742
In respect of each party whose members in the House of Representatives number not less than 45—
One Additional Junior Whip161,742
Chairpersons of select committees
Each member of Parliament who is the chairperson of a select committee161,742
Deputy chairpersons of select committees
Each member of Parliament who is the deputy chairperson of a select committee152,093
Other members of Parliament
Each other member of Parliament147,565

Dated at Wellington this 9th 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.

This temporary reduction determination affects the Parliamentary Salaries and Allowances Determination 2020 (the original determination).

This determination commences on 9 July 2020 and expires on 6 January 2021.

On 15 May 2020, the Remuneration Authority (COVID-19 Measures) Amendment Act 2020 (the Amendment Act) was passed. The purpose of the Amendment Act is to allow public sector leaders, including members of Parliament (MPs), to show leadership in the public sector during the COVID-19 outbreak and to show solidarity with those in the private sector who are losing their jobs or facing significant pay reductions. Accordingly, the Amendment Act inserted section 19A into the Remuneration Authority Act 1977 to permit the Authority to reduce the remuneration of certain public office-holders, including MPs (listed in Schedule 4A of the Amendment Act).

The salaries of MPs are set according to criteria in the Remuneration Authority Act 1977 with the underlying premise of de-politicising the setting of their remuneration. The Authority is generally not permitted to make a determination that reduces existing MPs’ pay and their pay must be paid according to the determination that is currently in force. However, section 19A overrides aspects of the legislative regime by permitting a capped reduction of MPs’ salaries by up to 20% for a period of up to 6 months.

In making this temporary reduction determination, the Authority has applied the existing criteria that it must take into account when setting the remuneration of MPs, which include taking account of any prevailing adverse economic conditions, fairness to the person whose remuneration is being determined, and fairness to the taxpayer (see sections 18 and 18A of the Remuneration Authority Act 1977). MPs will move to their adjusted salaries as specified in the Schedule of this determination on its commencement date.

On the day after this temporary reduction determination expires, MPs’ salaries will revert to the amounts payable under the original determination.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 11 June 2020.