The Government has come up with a "fairer" system to deal with MPs' pay, after last year's proposed pay increase was deemed unacceptably high.
Their salaries were frozen in August 2018 after the Prime Minister revealed the Remuneration Authority, which sets MPs' pay rates, had recommended a three per cent pay rise.
At the time, she said it was "just not appropriate for MPs to be the subject of such an increase".
Workplace Relations and Safety Minister Iain Lees-Galloway said a review of the way in which pay increases are calculated has been completed.
The Government announced the freeze yesterday, with no increase in salaries and allowances for a year. (Source: Other)
"In 2015, MPs took control of the way that their pay increases were calculated by replacing the Remuneration Authority's independence with their own preferred formula," he said.
"The changes were a failure, with this formula generating higher pay increases than the system used prior to 2015.
"We will repeal this formula and restore the independence of the Remuneration Authority to calculate increases in a fair and transparent manner."
The Prime Minister says there is a widening gap of inequality in New Zealand. (Source: Other)
MP pay will now be calculated using the same process for reviewing the remuneration of other key public office holders and will take into account "the value of personal benefit for MPs that arise out of entitlements".
A bill to repeal the 2015 rule will be introduced to Parliament tomorrow.
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