The Remuneration Authority will be required to take into account adverse economic conditions when setting MPs salaries under a new Government Bill, says Minister of Labour Kate Wilkinson.
"This year MPs from all political parties and others including the Governor-General were willing to forgo a pay increase but the Remuneration Authority could not take account of the recession in its decision.
"This Bill will allow the Authority to balance wage rises against the economic conditions of the day," Ms Wilkinson says.
"It seems sensible to allow the Authority to act with greater flexibility when it's required."
The changes will cover all professions the Authority is responsible for.
The Remuneration Authority Amendment Bill has been added to the Order Paper yesterday.