Members of Parliament have been given a $7,000 salary rise by the independent body who set their pay.

The Remuneration Authority this morning gave MPs an increase of 1.5 percent, as well as a $5,000 payment to compensate for the international travel allowance which was scrapped in January.

The changes will see the next Prime Minister's salary rise from $400,500 to $411,510, while his deputy will get $291,800, up from $282,500.

The Leader of the Opposition and the Speaker will both get $257,200, up from $249,100.


Backbenchers will receive $141,800, up from $134,800.

Authority chairman John Errington said increases in recent years have not kept up with the rising cost of living and general wage increases.

But Mana Party's Manukau East candidate John Minto was outraged by the pay increase.
"The government is very fond of telling us we are living in tough economic times, that we must make sacrifices, cut government spending and reduce public services. They tell us in tough economic times we must pull our belts tighter.

"However they are loosening their own belts by a couple of notches."

Mr Minto said politicians should instead be leading by example and taking wage cuts in tough times.

Prime Minister John Key said we was also disappointed with part of the decision to increase MP's pay.

He said he was happy with the 1.5 per cent increase because that was roughly in line with what the rest of the country got, but he said there was little need for the $5,000 to compensate for the scrapping of the travel allowance.