They have partly moved towards that. There is only one determination for the term, but it occurs after the election, not before – which I prefer. My preferred model would be the salaries are deterred three months prior to an election, so anyone elected knows in advance what the salary will be, and it won’t increase during the term.
The increase may be quite large as they salaries have been frozen since 2017 for various reasons. The problem is a large increase will look bad at a time when the Government is urging fiscal restraint elsewhere.
So I have another solution to the problem.
I have also long advocated that the minimum wage should be linked to the median wage. This would mean that the way to increase the minimum wage is to have a growing economy where the median wage is growing also.
Well the same could go for MPs. The higher the median wage of the economy, the higher an MPs salary is.
The median FT salary is currently just under $65,000.
MPs salaries are:
So I have another solution to the problem.
I have also long advocated that the minimum wage should be linked to the median wage. This would mean that the way to increase the minimum wage is to have a growing economy where the median wage is growing also.
Well the same could go for MPs. The higher the median wage of the economy, the higher an MPs salary is.
The median FT salary is currently just under $65,000.
MPs salaries are:
* MPs $164,000
* Select Cmte Chairs $180,000
* Minister outside Cabinet $250,000
* Cabinet Minister $296,000
* Deputy PM $335,000
* PM $470,000
This would give ratios of:
* MPs 2.5 times median wage
* Select Cmte Chairs 2.75x
* Minister outside Cabinet 3.85x
* Cabinet Minister 4.5x
* Deputy PM 5.2x
* PM 7.25x
No more of having the routine of people complaining if the increase is too high, if it is the exact same ratio as the median wage.
UPDATE: The Authority has made its determination, which is a modest 2.8% increase for most roles compared to 2020. They have also done determinations through to 2026, by which stage the increase is 11% over 2020. That is still pretty modest.
However the full remuneration packages are still considerable. This is what they now are:
Click to view
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
3 comments:
I like that David and fixing for a term ensures that inflation will cost them the most.
Yes, and how many of those employed in there would command the salaries that they currently do? Sod all, I'd wager. Those also-rans on the back benches should be taking a pay cut, not a rise. And we don't need the Remuneration Authority, which is another lot that should be axed. Far too many public servants are overpaid and lack accountability.
Time to disestablish the renumeration authority. Let MP's decide what they get paid and make them accountable to the electorate for it. Also, we need to stop paying for MP's who've left parliament like Jacinda Ardern. People who've done nothing but harm the country shouldn't be able to continue profiting of it. They're more than capable of taking care of themselves.
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