PEC defends 6 percent salary increase for MPs

Date:

BY JOSES SAREN

The Parliamentary Entitlements Commission (PEC) has defended its decision to award Members of Parliament a 6 percent cost of living adjustment (COLA), stating the increase was necessary to compensate for two years of delayed salary reviews and was made after extensive consultations with key economic stakeholders.

Speaking at a press conference yesterday, PEC Chairman Nigel Maizama addressed public concerns over the adjustment, which took effect on April 1, 2026, and clarified the constitutional process behind the decision.

“We do not make decisions arbitrarily or at the direction of any individual or authority.

“The Commission is carrying out an independent constitutional function and is not acting under political direction,” Maizama said.

Maizama explained that the Commission was unable to carry out its constitutional responsibilities following the prolonged illness of the late Chairman in 2023, which continued throughout 2024 until his passing on February 20, 2025. With no provision for an acting Chairman under existing regulations, the Commission was effectively paralyzed during this period.

Derek Vagi, Secretary – PEC said that public servants had already received COLA for 2024 and 2025, but MPs experienced delays because the Commission could not legally operate. The current 6 percent adjustment addresses those accumulated backlogs.

The Commission consulted extensively before finalizing its decision, Maizama said. Stakeholders included the Central Bank of Solomon Islands, the Ministry of Finance, the Budget Division, the Ministry of Public Service, the Attorney General’s Chambers, the Office of the Prime Minister and Cabinet, and the Public Service Commission.

Advice from the Central Bank indicated that while the 2025 Consumer Price Index increase was 2.7 percent, the higher 6 percent adjustment was reasonable as compensation for the absence of salary increases during the two previous years.

Maizama also noted that the Ministry of Finance confirmed the adjustment could be accommodated within the national budget. The increase has already been implemented for seven months, with the government managing to meet the additional costs.

Under the adjustment, the Prime Minister’s annual salary now stands at $454,659.40, translating to a fortnightly salary of approximately $17,000.

Other positions and their annual salaries include:

· Deputy Prime Minister: $408,687.10

· Ministers, Leader of Opposition, Leader of Independent Group: $354,912.78

· Deputy Speaker, Chairperson of Parliamentary Standing Committees: $320,279.37

· Ordinary Members of Parliament: $288,615.02

Maizama outlined three crucial factors the Commission considers when determining salary adjustments:

1. Affordability – whether the economy and budget can support the increase

2. Sustainability – whether the increase can be maintained long-term

3. Reasonableness – whether the adjustment is fair given economic conditions

“These are crucial elements which the Commission is seriously looking at,” Maizama said, emphasizing that the Commission does not act in isolation but relies on professional advice from the Central Bank and Ministry of Finance.

Addressing public misconceptions, Maizama clarified that MP salaries are indeed taxed under the Income Tax Act. Only other benefits and allowances are not taxable.

When questioned about the disparity between MP salaries and those of public servants, Maizama acknowledged the gap but said the PEC’s mandate is limited to parliamentary entitlements.

“For public officers, I would rather leave it to the Ministry of Public Service to look at that. In terms of the disparity, yes, it’s there. We cannot say anything more,” he said.

He added, however, that MPs are “decision-makers for this nation” with significant responsibilities, including law-making, budget scrutiny, representing constituents, and debating national issues.

“You must look at what leaders play. We should also give them the right remuneration. But it has to be balanced with the economic and financial realities on the ground,” Maizama said.

The Commission will continue to conduct annual reviews of MP salaries as required by the Constitution, with the next review scheduled for November.

Photo credit: Joses Saren

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