Tonga's Cabinet Ministers have given themselves a 5% pay increase, according to a statement by the Prime Minister’s Office on August 11. The increase has not been extended to civil servants.

The salary rise is due to an increase in the Cost of Living Allowance (COLA) of 5% of Ministerial allowances, which became effective from 1 July 2017.

According to the PM's Office, the 5% COLA increase was “prompted by the increase in the income tax imposed on the Hon Cabinet Minister’s annual salary by 24%, commencing 1 July 2017." 

They were apparently referring to the new individual employee tax rate whereby the individual tax rate went up from 20% to 25% for everyone who earns over $60,001 gross per year. [Therefore, If the minister's tax increased by 24% as stated by PMO, this indicates that they were paying only 1% tax before 1 July.] 

The PMO statement did not mention the previous tax rate enjoyed by the ministers.

Civil Servants

The statement went on to say that for the last two years, Ministerial COLA entitlements had been put on hold while civil servants received COLA increases to their salaries of 6% in 2014 and 5% in 2015. The approved 5% COLA increase this year for ministers, however, means they will not be back paid to 2014.

In 2005, civil servants salaries increased by a massive 60-70-80%. They then received an increase of 10% of COLA in 2009 and then increases again in 2014 and 2015.

The Prime Minister’s basic salary in 2014 was $94,500, which according to a government press release [2] in 2016 has remained unchanged until this year’s increase.

Extra salaries unconfirmed

Matangi Tonga contacted the Prime Minister’s Office today to confirm if the Ministerial basic salaries cover their respective portfolios or whether they are paid extra for each portfolio.

However, the Prime Minister’s office did not provide a comment today.