2 Mar 2015

Govt to change law to stop MP pay hikes

6:24 pm on 2 March 2015

The Government is changing the law to stop MPs receiving big annual pay rises.

Prime Minister John Key said Cabinet decided this morning that it would change the law to ensure MPs pay rises were tied to the average public sector pay rise.

Mr Key said the Remuneration Authority gave MPs a pay rise of 3.5 percent last week - whereas most public servants received pay rises of between just one and two percent.

Mr Key said the new law would ensure MPs' pay increases were as fair as possible.

"We need to make sure that we're fair and I think we should be paid as pay increases, no more in my view, than the average of what nurses and doctors and teachers and other state employees are paid."

Mr Key said the Government would backdate the new legislation under urgency to July 2014.