Changes to the process for setting pay for Members of Parliament

The Remuneration Authority (Members of Parliament Remuneration) Amendment Act repealed the 2015 changes and restored the Remuneration Authority’s discretion to set MPs’ pay based on specified criteria.

About the Act

MPs' pay was frozen in 2018, after the Government determined that the proposed salary increase to be unjustifiably high. The freeze allowed time for us to do work to ensure the settings for determining MPs' pay are appropriate.

The Amendment Act to implement the new system for setting MPs’ pay was passed in 2019.

The impact of the Act

The Amendment Act repealed the formula put in place through 2015 amendments. Under the new system, the Remuneration Authority is required to commence a review within three months after the conclusion of a general election. The determination after the election will set MPs’ pay for the entire term of Parliament specified on a year-by-year basis. The Remuneration Authority will have the discretion to set MPs’ pay, guided by the criteria in the Act.

The Remuneration Authority is also required to consider the value of the personal benefit arising out of entitlements when setting MPs' salaries.