Christopher Luxon says his Government making tough decisions to fix Labour's mess as support for National drops

MPs are getting a pay rise with the Remuneration Authority recommending a 2.8 percent increase every year up until the next election.

For a backbench MP that means an immediate jump of nearly $5000 a year to $168,600.

For a Cabinet minister, it's an extra $8000 to just over $304,000.

The Prime Minister's salary will jump $13,000 from $471,049 to $484,200 in the first year.

By the time the next election rolls around in 2026 it will be more than half a million - but he says he'll donate the increase to charity.

It comes as the Government appears to be facing a backlash from voters over its deep cuts to the public service.

The National Party had brave faces in the face of bad polls.

"I am feeling fine, it's not what I am hearing in Takanini," National MP Rima Nakhle said.

"Alarm bells are not ringing because we're very focussed on what needs to be done for this country," National MP Tim van de Molen said.

"We knew it was going to take quite a while to turn things around," National Minister Penny Simmonds said.

Nothing a chunk of cash can't cure - that's right, it's payday for MPs.

The Remuneration Authority has ruled that after six years of frozen pay packets, politicians have earned a pay rise.  

Stock-standard backbenchers get the full 2.8 percent bringing them up to $168,000. Ministers too - they're bumped above $300,000.

The Prime Minister gets an immediate $13,000 increase taking him to $484,200. 

Newshub took the numbers to the streets of Auckland.

"That's way too much," one person said.

"Wow, that's a lot," another said.

The Authority ruled that the role of Leader of the Opposition was no longer as valuable as a Cabinet minister, saying:

"MMP has caused the nature of this role to change and its salary relative to other party leaders is overstated - the authority thinks the gap should narrow, possibly significantly."

Meaning the Opposition leader's pay bump was only $2000 - a quarter of the increase Cabinet ministers get.

But the big boss's pay packet will continue to rise every year - reaching more than half a million by the time the next election rolls around.

"Everybody's being made redundant so I don't think they need a pay rise," one Aucklander said.

"You've got to fix the country up before you fix yourself up," another said.

It's not that hard to read the public sentiment on the increases. 

It's terrible timing given the Nats were just dealt a devastating poll blow that Luxon is not taking terribly well.

"Yeah, a bit frothing and sensationalist, were the words I think I used," Luxon said.

Last night's 1 News Verian poll showed the left had the numbers to govern just five months into the coalition's reign.

Newshub understands Labour's internal poll numbers also show the left a nose in front of the right - with the major parties neck-and-neck, the red team on 33, the blue on 34. 

"Well, it's not positive at the moment because we're having to make some pretty tough decisions. It's not easy when you've got people losing their jobs in the public service. It's not easy, right," Luxon said.

With economic times akin to 2008, Luxon is far from the soaring popularity of the John Key years.

"It always plays out in the polls when the economy is feeling vulnerable, then you see that react," Sir John said.

Possibly bad timing for him to rock up to Parliament on Tuesday as a reminder of the National Party's glory days as Luxon digs in and defends his ill-tasting medicine.

"I know it is tough for those individuals but it's not easy for a Government to actually drive through those as well. It is not easy putting sanctions on beneficiaries not holding their obligations on jobseekers, it is not easy to evict unruly tenants out of Kāinga Ora. I get all of that. But we have a hell of a mess to fix [and] are going to turn it around."

Turn it around by cutting jobs with one hand and taking pay rises with the other.

Jenna Lynch analysis

That was a political grenade Luxon didn't need to go off in his lap today. Taking a leaf from Sir John Key's political playbook, Luxon was lightning quick to fire out a statement saying he'll be donating his increase to charity - a masterful perception sidestep - one Luxon needed to make given his previous missteps when it comes to claiming entitlements he doesn't need.

In terms of the poll numbers, while there's no exact science in pointing to why the public is unhappy with the Coalition, it doesn't take a political science degree to figure out that headlines about job cuts and the fiscal cupboard being bare don't fill voters with the same warm fuzzies as big blue buses bounding across the country promising to "get our country back on track".

In a month, the Government will have a sugar hit to serve up in the form of tax cuts but if they're as advertised on the election campaign the average earner is in line for $1300 a year. That pales in comparison to the pay rise MPs just got and with a backbench salary already double that of the average Kiwi worker.

The Government may find even though it hasn't awarded the pay rises itself, it may come to sour its biggest Budget sweetener.