Bill English, Jacinda Ardern and other MPs have been given a pay rise of nearly 2.5 per cent. Backbench MPs will pocket an extra $4000 a year.

The Remuneration Authority has released its determination on MPs' salaries, backdating increases to July 1.

The authority determines the increase by the change in weekly earnings for employees in the public sector. Between 2016 and 2017 this was 2.46 per cent.

Under the current determination, the Prime Minister's salary goes up to $471,049 - an increase of $11,310.


The deputy Prime Minister's salary goes up to $334,734, an increase of more than $8000.

The Opposition leader receives $296,007, and backbench MPs get $163,961 - an extra $3937.

Former Prime Minister Sir John Key moved to peg salary increases to those in the public service to try to dampen criticism of MP pay increases.

In the past, the Remuneration Authority had to take other factors into consideration, such as the salaries of those in leadership positions in the private sector.

The Remuneration Authority is an independent body chaired by Fran Wilde. The latest decision was signed off on August 25.

Annual labour market statistics for the December 2016 quarter showed wage inflation (salary and wage rates, including overtime) for the private sector was 1.6 per cent.

The Herald today reported on the benefits for the 34 MPs who resigned or lost their seat at the election - they still get paid a salary for three months.

Long-serving MPs Annette King, Murray McCully, Maurice Williamson and Peter Dunne will be entitled to free international travel for themselves and their spouses for the rest of their lives.

That perk only applies to MPs who served three terms before 1999 and is capped at the cheapest Air NZ business-class flight to London each year, and 12 domestic return flights.

And as a former Prime Minister, Sir John will be entitled to $51,725 a year for the rest of his life, a taxpayer-funded car, and free travel if he is carrying out duties as a former leader. It is not known if he is or plans to claim this entitlement.