The Independent Remuneration Board has recommended an uplift of MLA salaries from £53,000 to £67,200, an increase of 26.8%.
The Board is responsible for setting the salaries and pensions of the 90 Members of the Legislative Assembly (MLAs).
They have also proposed financial sanctions if an Executive is not formed following next year’s election. If the office of First Minister or deputy First Minister become vacant at any time, MLAs would see a 10% reduction in week 6, 12 and 18, taking their salary to £48,988.90 after the third deduction.
This is a draft determination from the Board and will now go to the MLAs, the Assembly Commission and the Assembly Members’ Pension Trustees for a two-week consultation.
The Board considers the salaries of other elected politicians in Great Britain and the Republic of Ireland when making their recommendation.
TUV MLA Timothy Gaston has said: “At a time when major issues facing ordinary people go unaddressed, Stormont has made clear what its priorities are.”
He added: “This comes at a time when Stormont has less power than ever. Under the Protocol, around 60% of the laws governing our economy are now made by a foreign power. Legislative authority has been stripped away — yet MLA pay is being increased dramatically.
“Some will attempt to spin this by pointing to provisions which reduce pay if an Executive is not formed. But the reality is simple. MLAs will receive full pay for the first six weeks after an election. Only then does salary fall in stages — first to £60,480, then to £54,432, and only after eighteen weeks to £48,988.
“In other words, after months of deadlock, pay merely drops back to roughly what MLAs are on today — but only after first being lifted sharply upwards.”
Alan Lowry, Chairperson of the Board said: “The Board’s objectives are to provide MLAs with a level of remuneration which fairly reflects the complexity and importance of their work and does not deter anyone from seeking election on financial grounds.
“Our MLAs are elected to demanding roles which they perform within their own constituencies and at Parliament Buildings. They make important decisions around legislation, holding Ministers and Departments to account and their work on the Assembly’s scrutiny committees. It is important this work, as well as representing the views and concerns of their constituents, is recognised and valued.
“It is not appropriate, or fair, to expect MLAs to set their own salaries and the Board operates completely independently of the Assembly and the Assembly Commission.
“We want to ensure that public money is spent with probity, accountability, value for money and transparency. We have made this draft determination having regard to the current financial circumstances in Northern Ireland.
“As a Board, we have taken time to consider the evidence, based on the parameters of legislation. We have taken account of the requirements of the Assembly Members (Independent Financial Review and Standards) Act 2011 – and the report of the Ad Hoc Committee on the Assembly Members’ Remuneration Board Bill, particularly its recommendation to consider the wider financial circumstances of Northern Ireland.
“In reaching our determination, we also took into account the current salaries of elected representatives in the Scottish and Welsh Parliaments as well as those in Westminster and Dublin. Between 2016-25, an MP’s salary went up by 25%, while Members of the Welsh Senedd, Scottish Parliament and Irish Dáil saw increases of 19%, 23% and 34% respectively. In the same period, MLA pay increased significantly less, by 8%.
“With the previous Independent Financial Review Panel last making a determination in 2016, it is clear the system of MLA pay has not been functioning normally for a decade. Today’s announcement is a corrective measure and, without prejudicing future determinations, the Board would expect those to be considerably smaller adjustments, and more in line with inflationary and other pay trends of the day.
“We recognise these proposals come at a time when public confidence has been impacted by periods in recent years when our political institutions were not sitting and working normally. That is why, as a Board, we were determined that although MLAs should be paid more, that should only be on the basis of them doing their full jobs.
“Informed by the actions the Secretary of State for Northern Ireland took in 2022 on Members’ pay, our draft determination proposes that, should a government not be formed after the 2027 election, MLA salaries will be reduced. In addition, if at any time the offices of First Minister and deputy First Minister become vacant, MLA salaries will also be reduced.
“A reduction of 10% would be applied to MLA salaries after six weeks and again at weeks 12 and 18 – if a government had not been formed in line with the Northern Ireland Act 1998 which allows six months for its formation.”
