Solomon Islands MPs get huge increase in annual salaries
Solomon Islands Members of the 11th Parliament have been given a huge increase in their annual salaries, the Parliamentary Entitlements Commission (PEC), confirmed Monday.
The increases appear to have been paid for by pensioners whose pension rates have been slashed by as much as 30 percent a year.
These appeared in the PEC (Amendment) Regulation 2019 and is said to have been gazetted to be effective as of April 1.
According to published figures in the new gazette, the new salary increase has taken the Prime Minister’s basic gross annual salary to $307,919.52, (US$38,334) a salary hike of almost $122,000 (US$15,214) over his previous salary level. This means the Prime Minister now receives a taxable salary of $11,843.58 (US$1, 476) a fortnight.
His deputy Prime Minister also received an annual increase of almost $109,000 (US$13,602). The new salary now stands at $277,740.17(US$34,659). It means he now earns $10,682.31(US$1,333) in taxable salary a fortnight.
Ministers, Leader of Opposition, Leader of Independent Group have also received substantial increases in their annual salaries. Their new annual salary is $242,439.08 (US$30,259), an increase of $93,000 (US$11,609) over their last basic salaries. Each one now gets $9,324.54 (US$1,164) taxable salary a fortnight.
The Deputy Speaker, Chairperson of the Government Caucus, Chairperson of a Standing Committee of Parliament have also been awarded huge salary increases to $219,703.37(US$27,427) – an increase of well over $83,000 (US$10,369) in annual taxable salaries.
Each gets a fortnight taxable salary of $8,450.13(US$1,054).
Ordinary MPs’ annual salaries have also been increased from $124,970 (US$15,602) to $198,809.83 (US$24,820) – an increase of almost $74,000 (US$9,328) in annual basic salaries. Each one will get $7,646.53(US$954) in taxable fortnightly pay.
But the cost of the salary increases to MPs has come at a cost to pensioners whose pension rates have been slashed by as much as 30 percent.
For example, a former MP who served up to four years has had his pension rates slashed by as much as 10 percent. Those who served up to eight years eight years received a 15 percent reduction from 45 percent to 30 percent.
Those who served up to 12 years received a 15 percent reduction, while those who served up to 16 years have been dealt a 20 percent reduction. Former MPs in the 20-year bracket received a 20 percent reduction in their pension rate while those in the 24 year and those who served above 24 years received the heaviest reduction in their pension rates.
PEC Secretary, Derrick Vagi told Island Sun that in the past the MPs’ gross salary was low because they were tax-free.
Vagi said MPs’ gross salaries have been increased because they are now going to pay income tax.
As such, the MPs will still get reasonable amounts in their take home pay.
Vagi justified the reduction in pension rates, saying if the PEC did not agree to the reduction, pensioners would be getting a lot more than permanent secretaries.
He said pensioners would still be getting “more than hundreds” in their take home pay.
The gazette also set out other perks that MPs are entitled to. These include appointment grants of $10,000 (US$1,248).
The Prime Minister, Deputy Prime Minister, Ministers, Leader of the Opposition, Leader of the Independent Group, Deputy Speaker, Chairman of the Government Caucus and Chairman of the Standing Committees of the Parliament shall in addition receive $10,000.
MPs will also receive a one-off clothing allowance of USD$3,000 each.
The Prime Minister, Deputy Prime Minister, Leader of the Opposition, Leader of the Independent Group, Ministers, Chairman of Government Caucus and Chairman of Standing Committees of the Parliament will get an extra USD$500 in their Clothing allowance.
MPs are also entitled to a meal allowance of $200 (US$24) daily in addition to a daily local subsistence allowance of $300 (US$37) and a daily touring allowance of $300 daily.
Members are also entitled to Constituency allowance, which have been divided into zones.
Zone 1 - Temotu Pele, Temotu Nende, Vatud, Malaita Outer Islands – $28,000(US$3,495)
Zone 2 - East Are Are, West Are Are, Small Malaita, West Makira, Central Makira, East Makira, South Choiseul, Northwest Choiseul, East Choiseul, Ulawa & Ugi, Shortlands, Rennell & Bellona - $27,000(US$3,370)
Zone 3 - North Vella La Vella, South Vella La Vella, Ranongga & Simbo, North Georgia, South New Georgia, Rendova & Tetepari, Marovo, Hograno/Kia/Havulei, Maringe/Kokota, Gao Bugotu, East Kwaio, West Kwaio, Ngella, Savo & Russells and South Guadalcanal - $26,000(US$3,246)
Zone 4 - Gizo Kolombangara, West New Georgia & Vonavona, North Malaita, East Malaita, Lau/Mbaelelea, Fataleka, Central Kwara’ae, West Kwara’ae, Aoke/Langalanga, Northeast Guadalcanal, West Guadalcanal, East Guadalcanal, East Central Guadalcanal, Northwest Guadalcanal, Central Guadalcanal, North Guadalcanal and Baegu Asifola - $26,000 (US$3,246)
Zone 5 - West Honiara, East Honiara and Central Honiara - $26,000 (US$3,246)
In terms of overseas travels, the Prime Minister shall receive a daily subsistence allowance of USD$400.
Deputy Prime Minister, Ministers, Leader of Opposition, Leader of the Independent Group, Deputy Speaker, Chairman of the Government Caucus and Chairman of the Standing Committees of the Parliament shall be paid a daily allowance of US$350
Ordinary Members shall receive a daily allowance of US$300.
When the Deputy Prime Minister travels overseas in place of the Prime Minister, he or she shall be paid the Prime Minister’s rate of subsistence allowance.
All members are entitled to terminal grants of $400,000 (US$49,940) at the end of their four-year term.
As well, Standing Select Committee members are to be paid a daily rate of $400 (US$49) while the Special Select Committees members are to be paid the same rate.
Members’ Discretionary fund, administered by Parliament, remains unchanged at $500,000 (US$62,425) per annum.
SOURCE: ISLAND SUN/PACNEWS/PNG Today
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The increases appear to have been paid for by pensioners whose pension rates have been slashed by as much as 30 percent a year.
These appeared in the PEC (Amendment) Regulation 2019 and is said to have been gazetted to be effective as of April 1.According to published figures in the new gazette, the new salary increase has taken the Prime Minister’s basic gross annual salary to $307,919.52, (US$38,334) a salary hike of almost $122,000 (US$15,214) over his previous salary level. This means the Prime Minister now receives a taxable salary of $11,843.58 (US$1, 476) a fortnight.
His deputy Prime Minister also received an annual increase of almost $109,000 (US$13,602). The new salary now stands at $277,740.17(US$34,659). It means he now earns $10,682.31(US$1,333) in taxable salary a fortnight.
Ministers, Leader of Opposition, Leader of Independent Group have also received substantial increases in their annual salaries. Their new annual salary is $242,439.08 (US$30,259), an increase of $93,000 (US$11,609) over their last basic salaries. Each one now gets $9,324.54 (US$1,164) taxable salary a fortnight.
The Deputy Speaker, Chairperson of the Government Caucus, Chairperson of a Standing Committee of Parliament have also been awarded huge salary increases to $219,703.37(US$27,427) – an increase of well over $83,000 (US$10,369) in annual taxable salaries.
Each gets a fortnight taxable salary of $8,450.13(US$1,054).
Ordinary MPs’ annual salaries have also been increased from $124,970 (US$15,602) to $198,809.83 (US$24,820) – an increase of almost $74,000 (US$9,328) in annual basic salaries. Each one will get $7,646.53(US$954) in taxable fortnightly pay.
But the cost of the salary increases to MPs has come at a cost to pensioners whose pension rates have been slashed by as much as 30 percent.
For example, a former MP who served up to four years has had his pension rates slashed by as much as 10 percent. Those who served up to eight years eight years received a 15 percent reduction from 45 percent to 30 percent.
Those who served up to 12 years received a 15 percent reduction, while those who served up to 16 years have been dealt a 20 percent reduction. Former MPs in the 20-year bracket received a 20 percent reduction in their pension rate while those in the 24 year and those who served above 24 years received the heaviest reduction in their pension rates.
PEC Secretary, Derrick Vagi told Island Sun that in the past the MPs’ gross salary was low because they were tax-free.
Vagi said MPs’ gross salaries have been increased because they are now going to pay income tax.
As such, the MPs will still get reasonable amounts in their take home pay.
Vagi justified the reduction in pension rates, saying if the PEC did not agree to the reduction, pensioners would be getting a lot more than permanent secretaries.
He said pensioners would still be getting “more than hundreds” in their take home pay.
The gazette also set out other perks that MPs are entitled to. These include appointment grants of $10,000 (US$1,248).
The Prime Minister, Deputy Prime Minister, Ministers, Leader of the Opposition, Leader of the Independent Group, Deputy Speaker, Chairman of the Government Caucus and Chairman of the Standing Committees of the Parliament shall in addition receive $10,000.
MPs will also receive a one-off clothing allowance of USD$3,000 each.
The Prime Minister, Deputy Prime Minister, Leader of the Opposition, Leader of the Independent Group, Ministers, Chairman of Government Caucus and Chairman of Standing Committees of the Parliament will get an extra USD$500 in their Clothing allowance.
MPs are also entitled to a meal allowance of $200 (US$24) daily in addition to a daily local subsistence allowance of $300 (US$37) and a daily touring allowance of $300 daily.
Members are also entitled to Constituency allowance, which have been divided into zones.
Zone 1 - Temotu Pele, Temotu Nende, Vatud, Malaita Outer Islands – $28,000(US$3,495)
Zone 2 - East Are Are, West Are Are, Small Malaita, West Makira, Central Makira, East Makira, South Choiseul, Northwest Choiseul, East Choiseul, Ulawa & Ugi, Shortlands, Rennell & Bellona - $27,000(US$3,370)
Zone 3 - North Vella La Vella, South Vella La Vella, Ranongga & Simbo, North Georgia, South New Georgia, Rendova & Tetepari, Marovo, Hograno/Kia/Havulei, Maringe/Kokota, Gao Bugotu, East Kwaio, West Kwaio, Ngella, Savo & Russells and South Guadalcanal - $26,000(US$3,246)
Zone 4 - Gizo Kolombangara, West New Georgia & Vonavona, North Malaita, East Malaita, Lau/Mbaelelea, Fataleka, Central Kwara’ae, West Kwara’ae, Aoke/Langalanga, Northeast Guadalcanal, West Guadalcanal, East Guadalcanal, East Central Guadalcanal, Northwest Guadalcanal, Central Guadalcanal, North Guadalcanal and Baegu Asifola - $26,000 (US$3,246)
Zone 5 - West Honiara, East Honiara and Central Honiara - $26,000 (US$3,246)
In terms of overseas travels, the Prime Minister shall receive a daily subsistence allowance of USD$400.
Deputy Prime Minister, Ministers, Leader of Opposition, Leader of the Independent Group, Deputy Speaker, Chairman of the Government Caucus and Chairman of the Standing Committees of the Parliament shall be paid a daily allowance of US$350
Ordinary Members shall receive a daily allowance of US$300.
When the Deputy Prime Minister travels overseas in place of the Prime Minister, he or she shall be paid the Prime Minister’s rate of subsistence allowance.
All members are entitled to terminal grants of $400,000 (US$49,940) at the end of their four-year term.
As well, Standing Select Committee members are to be paid a daily rate of $400 (US$49) while the Special Select Committees members are to be paid the same rate.
Members’ Discretionary fund, administered by Parliament, remains unchanged at $500,000 (US$62,425) per annum.
SOURCE: ISLAND SUN/PACNEWS/PNG Today
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