For almost seven years, MPs' pay packets haven't changed, however, that could be over with the independent body tasked with setting politicians' pay recommending three 2.8 percent increases over the Parliamentary term.
The Remuneration Authority has released its recommendations on Tuesday which said the annual salary for ordinary MPs, the Prime Minister, ministers and most other roles with additional responsibilities should increase by 2.8 percent each year for three years from July 1.
"The Authority determined that alignment to this salary range met the legislated need to achieve and maintain fair relativity with levels of remuneration being received elsewhere," it said.
Under the recommendation, Prime Minister Christopher Luxon's salary would increase by $13151 from $471,049 to $484,200 on July 1.
Fast forward to July 2026 and Luxon will be earning almost $50,000 more. However, the money won't be going into his pocket, with the Prime Minister announcing he will donate it to charity.
"The Remuneration Authority runs an independent process to set MPs' pay. The Prime Minister has indicated he does not want or need an increase so any increase he received would be donated to charity," a spokesperson for Prime Minister Christopher Luxon said.
For the ordinary MPs, the jump in salary over the three years is $17,239.
However, the Authority has for the first time determined a pay cut for party co-leaders. It said co-leaders should be paid half the sum of the salaries that apply to a party leader and a deputy leader.
Meanwhile, the salary for the Leader of the Opposition will increase by a lesser amount to close the gap between them and other parties in Opposition.
The Remuneration Authority sets the pay for key public officials. After every election, the Authority will reassess MPs' pay and recommend changes if it sees fit.
According to the authority's website, all determinations are final and must be implemented.
However in 2018, then-Prime Minister Jacinda Ardern froze pay saying the proposed increases were out of step with the wider workforce and adding to the rich-poor divide. It meant MPs' pay hasn't changed since mid-2017.
The move received cross-party support including from National, which was in Opposition at the time, despite the Remuneration Authority having recommended increasing MPs' pay by 3 percent.
Currently, New Zealand's Prime Minister receives a salary of $471,049 a year and perks, while the Deputy PM gets $334,734.
At the end of the Parliamentary term, the Prime Minister would be on $520,500 and the deputy would be on $369,800.
Meanwhile, Cabinet Ministers and the Leader of the Opposition get $296,007. This would increase to $327,100 over the term, while the Leader of the Opposition will increase to $309,000.
Ministers outside Cabinet currently get $249,839, this will rise to $276,000.
MPs without leadership positions within their party or on select committees - aka 'backbenchers' - get $163,961 a year. This would rise to $181,200 over the three years.
While MPs who chair or deputy chair select committees earn $179,713 and $163,961, respectively. Their salaries would rise to $198,600 and $186,700.
The Speaker of the House is paid $296,007 and the Deputy Speaker earns $209,471. This would rise to $327,100 and $231,400, respectively.
These current salaries are out of line with similar roles in comparable countries (Ireland, Australia, Canada and the UK). For example, the report found the salary of an MP in the Republic of Ireland is over 30 percent more than in New Zealand.
Prime Minister Christopher Luxon had been facing pressure to freeze MPs' pay due to his Government's widespread cost-cutting measures.
The Coalition Government has directed the public services to cut costs by between 6.5 and 7.5 percent to help reduce annual public service spending by $1.5 billion. It's resulted in thousands of jobs proposed to be axed across the sector.
In response to questions earlier about whether MPs should get pay rises, Luxon said it's not right for politicians to comment on their pay and that it was up to the Remuneration Authority to make those decisions.
