Budget 2003 - Third successive pay rise for New Zealand Defence Force
Uniformed defence personnel are about to receive their third pay rise in as many years. Minister of Defence Mark Burton
announced today that effective 1 July 2003, regular force personnel will receive a two percent across the board increase
to their base pay and a further increase in their Military Factor Allowance (MFA). This initiative also includes
targeted pay increases.
"The 2003/2004 budget includes an additional $19 million of baseline funding, which has been made available to the Chief
of Defence Force (CDF), the employing authority for Service personnel, to raise salary levels.
“In addition to the rise in base pay levels, personnel will also receive a one-step increase in the MFA. This is
intended to help compensate our service men and women for the additional personal liabilities inherent in carrying out
Defence Force duties.
“The CDF is responsible for determining the level of pay increase each Service member will receive. He will shortly
announce the details of increases for all ranks and trades.”
Mark Burton stressed that this pay increase demonstrates the government’s determination to address market relativity for
military personnel.
“The New Zealand Defence Force’s greatest asset is its people, and this government continues to invest in their future.
This third pay rise will equate to an increase of between $1,000 and $5000 per annum for the majority of personnel, and
represents another significant step towards bringing defence pay rates into line with comparable occupations in the
private sector.
“The aim is to maintain a consistent, long-term approach to solving pay issues at the organisational level. Pay rises
in both 2001 and 2002 were well received and have had a positive impact across the NZDF, both in terms of retention and
organisational goodwill.
“This government continues to invest in building a modernised, well-equipped and sustainable Defence Force for New
Zealand. This pay rise—a direct investment in our service men and women—directly signals our ongoing commitment to
achieving that goal. “