Proposed pay rise for MPs rescheduled due to fragile state of economy and other pressing Gov’t commitments, including the hosting of the Pacific Games in Honiara this year
THE consultation on the proposed pay for Members of Parliament which has been rescheduled for implementation in April 2024 will commence next month.
The proposed increase in salaries and other perks for MPs was supposed to be granted as of the beginning of this month but was postponed for another 12 months due to the fragile state of the country’s economy.
Chairman of the Parliamentary Entitlements Commission, Johnson Siapu, told local media in a press conference yesterday that there are important areas inside the constitutional powers where his commission deals with it.
In this particular case, the salaries of MPs get an increase every time that public servants receive a salary increase or cost of living adjustment and that is annually.
He said in 2017 and 2019 there were two rises on the cost-of-living adjustment and so his commission was able to deal with them in 2018 and 2019.
“Unfortunately, towards the 1st of April 2019, COVID-19 hit the country so the Cabinet deliberated on this issue.
“Prime Minister, Manasseh Sogavare, then requested the Commission to delay the award of 2017 and 2019,” Mr Siapu said.
The PEC Chair said because of the request, the commission had to halt the salary increase for MPs.
He explained that in early January this year, they started the consultation up until towards the end of March when they stopped as the commission had to look at how to respond to this case.
Mr Siapu said after looking at how to respond, the commission concluded that the 2023 proposed Parliament Entitlement Regulation Amendments be postponed for 2024 on the following reasons:
- There is the National General Election coming up in 2024 and the commission does not want this to become an issue from now until the election.
- The government revenue is not stable due to COVID-19 and its commitment towards the Pacific Games 2023
- The portion of 2023 budget is on deficit and the state of the national economy as advised by the Central Bank of Solomon Islands is fragile.
Mr Siapu said according to constitution, granting of pay rise for MPs is on first of April in the year it should be done.
“For this year, it should on 1st of April and now that we moved it for a later date, our consultation will recommence in May.
“That consultation is for salary alone,” he added.
The PEC Chair said according to constitution, they can deal with the matter anytime of the year.
Secretary to Prime Minister, Dr Jimmy Rodgers, added that there has not been an increase in salary for MPs since the 2017 review.
He said in 2019, it was to be granted but due to economy problem it was put on halt.
Dr Rogers said from 2019 up until this year, the salary package of MPs remained the same and that is the message the public should get.
“In this year’s review, there are grounds for recommendation of increase because over the past five years, there were no increases but due to the [current] financial situation, the commission decided to withhold it.
“Which means, the earliest they can be granted this increase is April next year but then April next year we have the election, so I don’t know we might wait for another two years,” Dr Rogers said.
The Secretary to the Prime Minister said this is not in line with what the law prescribes because of other matters.
Under the initial PEC proposal, salary levels have been divided into three categories reflecting the seniority of each ministerial position.
Prime Minister and his Deputy are in the first and second categories, whilst Ministers, Leader of Opposition and the Leader of the Independent Group make up the third group.
The proposed increase in salary would take the Prime Minister’s new basic salary to $338, 000.24 a year – an increase of 9.7 percent or $13, 000 net per fortnight on the current basic salary level.
The Deputy Prime Minister’s new basic salary would be $304, 872.67 – reflecting a 9.7 percent increase on his current basic salary.
New salaries for Ministers, Leader of Opposition and Leader of the Independent Group in Parliament would have also gone up by 9.7 percent had the increase been granted.
This means each would receive a basic salary of just $266, 123.00 a year.
The Deputy Speaker, Chairperson of the Parliamentary Caucus and Chairperson of Parliamentary Standing Committees would have also benefitted from the proposed increases in basic salary.
Each position would attract an annual basic salary of $241,166.24 – an increase of 9.7 per cent increase on the current basic salary level.
A new basic salary for Ordinary Members of Parliament – that is, those who do not hold official appointments – would have been $218, 231.60 – an increase of 9.7 per cent on the current level.
BY CHARLES KADAMANA
