November 24th, 2024

NZ Defence personnel receive largest pay increase in a decade, amid record investments in military capabilities

The pay increase aims to attract and retain more New Zealanders in the defence force and address high staff turnover rates.

To boost the defence payroll, the government will invest over $419 million. (Photo: NZDF)
To boost the defence payroll, the government will invest over $419 million. (Photo: NZDF)

New Zealand's Defence Minister, Andrew Little, announced that Budget 2023 will deliver the biggest pay increase for defence personnel in over a decade, alongside record investments in upgrading the country's military capabilities.

The pay increase aims to attract and retain more New Zealanders in the defence force and address high staff turnover rates. The pay for many NZDF personnel, including new recruits and skilled lower-ranked service members, will increase between $4,000 and $15,000 from 1 July 2023.

Andrew Little stated, "This increase is four times greater than any previous defence remuneration boost over the past decade. It will go a long way to address attrition issues and make defence a career of choice."

As a result, 90% of NZDF personnel will now be paid at, or close to, market rates.

The decision to increase defence personnel pay comes in response to a number of challenges faced by the NZDF, including responding to natural disasters like Cyclone Gabrielle, providing support for training Ukrainian troops in the UK, and patrolling and surveillance operations in the Pacific region. These challenges have stretched the NZDF's resources and heightened the need for a more competitive remuneration package.

To boost the defence payroll, the government will invest over $419 million. Little emphasised the government's moral obligation to ensure fair pay for defence personnel, who often undertake critical and dangerous work.

"Defence personnel contribute to a more peaceful and secure world both on and offshore. With climate change and an increasingly contested geostrategic environment, including in our Pacific neighbourhood, it is important that New Zealand has the personnel and equipment to play our part in supporting global peace and security,” Andrew Little said.

In addition to the pay increase, Budget 2023 will invest a further $328 million in upgrading Defence Force assets and infrastructure. This includes $90 million for upgraded aviation fuelling facilities at Ohakea, $93 million for world-class communications upgrades for frigates and new Bushmaster protected mobility vehicles, and $85 million to improve defence housing, with up to 50 new buildings at Waiouru and a renovation pilot for 13 properties at Burnham, Linton, and Ohakea.

“Many personnel and their families are asked to move between bases to serve, and it is important the housing provided is suitable to support them to do their jobs,” Andrew Little said.

The remuneration uplifts are expected to take effect from 1 July 2023. Today’s capital announcements bring the total amount invested in Defence to $4.7 billion since 2017, or double what the previous government spent.