The Remuneration Authority (the Authority) sets and reviews the remuneration for the chief executives of three Public Service departments: the State Services Commission, the Crown Law Office and the Government Communications Security Bureau. In addition, the Authority sets and reviews the remuneration for ten other chief executives of departments and officers of parliament who are statutory officers (holders of office who are required to exercise a high degree of independence).
The Remuneration Authority Act 1977, ss.18, 18A requires the Authority to consider the following criteria when setting remuneration:
- Fair relativity with comparable positions.
- The need to be fair to the individuals whose pay is being set, and to the taxpayer or ratepayer.
- The requirements of the job.
- The need to recruit and retain competent individuals.
- Any prevailing adverse economic conditions (which may lead the Authority to set remuneration at a rate lower than might otherwise have been the case).
The Authority reviews the remuneration of all positions every year. In these reviews, the Authority considers information from a range of sources. This includes:
- Data collected by the State Services Commission through its annual survey of chief executive remuneration in the Public Service and wider State sector, and its monitoring of remuneration movements in the private sector.
- Trends and developments in remuneration in sectors relevant to those where the Authority sets remuneration. For example, movement in remuneration in the legal profession.
- Major changes, including legislative changes, in the role(s) concerned.
- The views of the individuals or groups concerned.