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Remuneration Authority Act 1977

18A: Countervailing economic conditions

You could also call this:

"Considering the economy when deciding how much someone gets paid"

Illustration for Remuneration Authority Act 1977

When the Remuneration Authority decides how much someone should get paid, they have to think about the economy. If the economy is not doing well, the Authority looks at evidence from a trusted source. They can then decide to pay someone a lower amount than they normally would. If the Authority decides to pay someone a lower amount, it cannot be lower than what they are already getting. The Authority must follow all the rules about setting pay, including the rules in this section, when they make their decisions, including those under section 12(1)(a) or 12B(1).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2645400.

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18ACountervailing economic conditions

  1. Subsection (2) applies in relation to the Authority in determining the remuneration of any person or group of persons under section 12(1)(a) or 12B(1) or under any other enactment.

  2. The Authority—

  3. must take into account any prevailing adverse economic conditions, based on evidence from an authoritative source; and
    1. may determine the remuneration at a rate lower than it would otherwise have determined.

      1. A determination of remuneration at a lower rate under subsection (2)(b) must not result in the remuneration of a person or group of persons being lower than the remuneration the person or group of persons is entitled to before the determination.

      2. To avoid doubt, the provisions of any other enactment relating to the setting of remuneration by the Authority must be read together with, and subject to, this section.

      3. Repealed
      Notes
      • Section 18A: inserted, on , by section 4 of the Remuneration Authority Amendment Act 2009 (2009 No 65).
      • Section 18A(5): repealed, on , by section 6 of the Remuneration Authority (Members of Parliament Remuneration) Amendment Act 2019 (2019 No 83).