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Pay freeze hits public servants but not contractors

Pay freeze hits public servants but not contractors Phil Pennington © Provided by Radio New Zealand State Services Commissioner Peter Hughes Public servants pay is being frozen for three years, but not the rates the sector pays to thousands of contractors and consultants. A freeze directive the Public Service Commission issued earlier this week does not mention contractors, who can seek an increase every two years if it is reasonable and justified . By contrast, public servants on more than $60,000 must now prove exceptional circumstances to get a rise. Those on more than $100,000 will get no raise for three years. Public Service Minister Chris Hipkins said the government was keeping an eye out to make sure contractor rates did not go up.

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