"The aims of the review were to increase the transparency of decisions affecting remuneration, ensure that staff are paid fairly and that pay rates are competitive," council said.
Commission chair Anne Tolley said the review and resulting salary increases would play a crucial role in the council's ability to deliver on the city's Long-term Plan.
"Over the next nine years, we will deliver the most ambitious Long-term Plan this city has ever seen. We have a huge amount of work ahead of us to ensure this community gets the city it deserves.
"We need to ensure we can retain and attract the right people, with the right skills, experience and commitment to do the mahi," she said.
Tolley said council was competing with businesses from around New Zealand, and the rest of the world, to attract and keep talent.
"Competitive remuneration is essential in making the council an attractive place to work, and the review has shown we have lost some ground in that regard."
As part of the review, all jobs were evaluated externally to ensure the remuneration for each job was appropriate.
The council would also change the way the salary range for each job grade is calculated. which aimed to reduce the disparity between public and private sector salaries.
Council said changes would be introduced through this year's annual salary review.
An additional eight per cent had been budgeted through the Annual Plan to fund the salary increases and an increase in the council's annual leave provision.
Extra funding had also been budgeted for new roles which were required to deliver the long-term plan work programme.