Prime Minister Jacinda Ardern announced this afternoon that he will freeze all salaries from MP until July next year.
Ms. Ardern announced the news at her press conference after the cabinet and revealed that she had taken the step after the remuneration authority, which determines the wages of members of parliament, had recommended a 3 percent salary increase for members of parliament.
"That is unacceptable for this government," Ardern said today.
"Today, the government has agreed to freeze MP Pay until July 2019, and to evaluate the financing formula used by the Authority to ensure that it is fair and in line with the expectations and values of this government."
"I have informed all party leaders about this decision."
She said it was "just not appropriate to make parliamentarians the subject of such an increase".
Mrs. Ardern said that she & # 39; complete understanding & # 39; felt by opposition leader Simon Bridges and ACT leader David Seymour.
The Minister for Workplace Relations and Security Iain Lees-Galloway said the government had to take action before the remuneration authority started new wage rates.
"Because of the timing of the annual enlargement process as enshrined in the law, we have to use an urgent legislative process aimed at introducing in September," said Mr. Lees-Galloway.
"This means that we have to change the law on the 1977 remuneration authority to suspend new provisions by the remuneration authority and to restore the parliamentary salaries and allowances 2017 until 30 June 2019."
As of July 1, 2017, the Prime Minister's annual salary was $ 471,049, and the Deputy Prime Minister received $ 334,734.
MPs who were not presidents of selected commissions received $ 163,961.