Ministers and chief executives to take pay cut of 20 percent

“This isn’t about pay cuts at the front line. We don’t want people on low and middle incomes to bear the brunt,” Minister for State Services Chris Hipkins said.

The Prime Minister, Government ministers, and public service chief executives will take a pay cut of 20 percent over the next six months, Prime Minister Jacinda Ardern announced today.

"It is the right thing to do, and I acknowledge chief executives for volunteering to take the pay cut alongside us," Jacinda Ardern said.

"I feel acutely the struggle many New Zealanders are facing and so too do the people I work with.

"While this cut in itself won't shift the Government's overall fiscal position it is an acknowledgment that every person and organization has a part to play as we unite to stamp out Covid-19 and save lives.

"It stands alongside many actions taken by all of us – Government, private sector, citizens, to tackle the health and economic challenges of Covid-19 including:

The more than $23 billion economic package, including the wage subsidy that has paid out over $9 billion to 1.5 million New Zealanders

Neighbors looking out for one another

Rent freezes and landlords supporting tenants

Boosting the winter energy payment and benefits

New Zealanders staying home to save lives

The Student Army delivering groceries to over 65s

The Ministry of Health officials in charge of mandatory quarantine, for which I've received a message about their professionalism and exceptional work

"For us, it's about showing leadership," Jacinda Ardern said.

"This isn't about pay cuts at the front line. We don't want people on low and middle incomes to bear the brunt," Minister for State Services Chris Hipkins said.

"They make up a huge part of our essential workforce. We need to sustain public sector jobs and ensure services continue to be delivered.

"The decision we've made is an in-principle one. We will now work through the mechanism to make it happen," Chris Hipkins said.

(With Inputs from New Zealand Government Press Release)