The Royal New Zealand RSA is calling on the Government to provide greater, sustained funding for New Zealand Defence Force remuneration, saying investment in people must keep pace with New Zealand’s defence ambitions.
The RNZRSA welcomes the additional funding provided for Defence pay through Budget 2026. However, the average 2.2 per cent pay increase announced on Friday is well below annual inflation of 4.1 per cent. For most serving personnel, the increase has therefore not kept pace with rising prices, leaving them worse off in real terms.
RNZRSA National President Tony Hill said the Government must adequately fund the NZDF to recruit, retain and properly remunerate the people needed to deliver its growing capability.
“Ships, aircraft and technology only become defence capability when there are enough trained and experienced people to operate and maintain them,” Mr Hill said.
“Military personnel step up and accept obligations well beyond those found in most workplaces, including postings, separation from family, irregular hours, injury or worse, and the liability to serve wherever New Zealand needs them. Their remuneration should properly reflect that commitment.”
The recent pay increase provided larger targeted increases for colonel-equivalent and brigadier-equivalent personnel, whose remuneration was assessed as being around 33 per cent below relevant market benchmarks. Mr Hill said addressing that gap may have been necessary to retain experienced senior leaders, but the outcome would understandably be difficult for junior personnel to accept.
“Senior leadership takes many years to develop and retain, but junior personnel are also essential to the capability of the NZDF,” Mr Hill said.
“It is difficult for them to see larger increases directed elsewhere while their own pay is going backwards against the cost of living.”
The targeted increases have taken an important step towards correcting the significant market imbalance affecting senior military leaders. The RNZRSA is now calling on the Government to turn its attention to improving remuneration for junior personnel, experienced non-commissioned officers and critical technical and specialist roles, where pay pressures risk undermining retention and adding to existing workforce gaps.
It is also asking the Government to ensure workforce planning sits alongside major capability investment, so new ships, aircraft, technology and infrastructure are matched by the people needed to operate and sustain them.
The RNZRSA is seeking greater transparency around remuneration decisions and market comparisons, action on pay compression, completion of wider reforms already identified by NZDF, and a review of accommodation assistance to ensure rising housing costs do not further disadvantage serving personnel.
“The Government has set a welcome ambition to build a stronger Defence Force. It must now properly fund the people required to deliver it,” Mr Hill said.
“A fairer and more sustainable remuneration system will strengthen recruitment, retention and readiness across the NZDF. Defence capability starts with its people.”
