Pay rise for military

11.00am

Most uniformed defence personnel will get an annual pay rise of between $1000 and $4900 from June 30, Defence Minister Mark Burton said today.

Announcing pay rises while Prime Minister Helen Clark was visiting troops in East Timor, Mr Burton said there was "a compelling case" for spending an extra $9.5 million in the coming financial year.

Savings from within defence budgets would be used to match the Government's injection of $9.5m to ensure a base pay increase of 2 per cent across the board from the end of next month.

There would also be a $573 increase in the "military factor" payment. This compensates armed forces for responsibilities such as having to be on duty 24 hours a day, compulsory postings and discipline.

Mr Burton said there were also other increases with "some significant targeting at the captain, warrant officer, and staff sergeant equivalent ranks". Warrant officers and senior captains would get a $3900 increase a year, staff sergeant equivalents $2600 and sergeant equivalents $2000.

The majority of individual increases in total remuneration fell within $1000 to $4900 a year. There would also be higher increases for specialists such as doctors and legal officers who are paid below market rates.

Last year the Government spent $21.4 million on targeted pay rises.

"This year the Chief of Defence Force has taken a more general approach, recognising that in a very strong employment market there are retention pressures across most trade and ranks," Mr Burton said.

The Government had accepted the need for further increases "over time".

Chief of Defence Force Air Marshall Bruce Ferguson said in a message to troops that the targeted increases would solve "some of the compression problems" in pay scales.

"The extra responsibility that comes with promotion should be appropriately remunerated ," he said.

There would also be no increase in accommodation charges this year as there had been minimal increases in the private rental market.

Further work was under way on "leave management, family friendly policies and changes to some allowances and other entitlements."

- NZPA

nzherald.co.nz/defence

Full Herald coverage:
nzherald.co.nz/budget

Budget links - including Treasury documents:
nzherald.co.nz/budgetlinks