Prime Minister Helen Clark has been given a whopping $29,800 pay rise - 9.4 per cent more than she gets now.
The increase from $317,200 a year to $347,000 is also backdated to July 1.
The new level of MPs' pay and allowances was released yesterday by the Remuneration Authority.
Helen Clark also gets a yearly expense allowance, which rises $900 to $17,900.
Deputy Prime Minister Michael Cullen's pay increases 8.1 per cent, from $226,700 to $245,000.
The pay of Cabinet ministers, Speaker Margaret Wilson and National Party leader Don Brash rises 6.5 per cent, from $202,800 to $216,000.
The heads of select committees receive 4.7 per cent more, from $124,200 to $130,000.
Ordinary MPs' pay will rise 4.1 per cent, from $113,300 to $118,000. Each MP gets an expense allowance, which increases from $12,815 to $13,500.
The authority said salaries were reviewed having regard to the value of other benefits paid, salary movements in the state sector and comparable roles in other countries.
Pay movements in the senior levels of the public service and judiciary meant a "significant increase" was needed to maintain relativity.
Act leader Rodney Hide said the pay rises would be a sick joke for New Zealanders.
"It is going to be tough for New Zealanders to swallow considering Michael Cullen [as Finance Minister] and [Reserve Bank Governor] Alan Bollard are telling everyone to tighten their belts for Christmas," he said.
A spokesman for the Prime Minister said the authority's decision had nothing to do with the Government.
He confirmed that New Zealand First leader Winston Peters, as Foreign Minister outside the Cabinet, would be paid $183,000 instead of the $216,000 that a Cabinet minister receives.
- Additional reporting NZPA
