Prime Minister Jacinda Ardern says if she were to allow a recommended three per cent pay rise, it would not be keeping with "public expectations".
The Remuneration Authority recommended the increase yesterday but Ms Ardern said Cabinet had agreed to enact a pay freeze for all MPs until July next year.
Recommended increases are formulated based on the percentage increase of weekly pay over the entire public sector, and Ms Ardern said yesterday in a statement that formula will be re-assessed "to ensure it is fair and in keeping with this Government's expectations and values".
Ms Ardern this morning told TVNZ 1's Breakfast programme the move is about staying true to her government's aims.
"It just doesn't fit with what we're trying to achieve as a government," Ms Ardern said.
"I don't think it's keeping with public expectations."
She said there is already a widening wealth inequality gap in New Zealand, and she does not want to contribute further to it.
MP SALARY RATES
MP salaries were last increased on August 25 last year, by about 2.5 per cent, and were backdated to July 1 2017.
Prime Minister $471,049
Deputy Prime Minister $324,734
Executive Council Cabinet Minister $296,007
Executive council Portfolio-holding non-Cabinet minister $249,839
Executive Council no portoflios non-Cabinet minister $217,676
Parliamentary Under-Secretary $194,374
Speaker of the House of Representatives $296,007
Deputy Speaker $209,471
Each Assistant Speaker $179,713
Leader of the Opposition $296,007
Party Leader $179,713, plus $2138 for each MP in the house numbering up to 5, $1430 up to 23 and $709 more than 23
Deputy Party Leader with more than 25 MPs in the house $206,627, plus $710 for each MP in house numbering between 25-35, $410 for 35-45.
Whip with more than 4 MPs in the house $179,713, plus $1430 for each MP in the house numbering over 6 up to 24, $709 for 24-35, $410 for 35-45.
Junior Whip with more than 4 MPs in the house $179,713
Select Committee Chairperson $179,713
Select Committee Deputy Chairperson $168,992
Member of Parliament $163,961
Yearly allowances:
Prime Minister: $22,606
Speaker: $21,136
Member of Parliament: $16,980
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