New Zealand Defence Force to Receive Biggest Pay Increase ‘In Decades’ as Personnel Leave in Droves

Soldiers carry 160 kilogram bags during Exercise Torokiki at Linton Military Camp in Palmerston North, New Zealand, on Nov. 25, 2022. Hagen Hopkins/Getty Images

New Zealand Defence Force (NZDF) personnel are getting the biggest pay rise in over a decade in an attempt to stop serving members deserting the forces.

Prime Minister Chris Hipkins said the wages of men and women who served in the defence force have lagged behind.

“It’s unfair, and it’s leading to significant rates of attrition. It’s also putting at risk our ability to make necessary deployments whilst also responding to events, such as Cyclone Gabrielle,” he said at a press conference.

Hipkins said the announcement was about tackling attrition issues and making a career in the defence force an attractive option, particularly in the current geo-strategic landscape within the New Zealand region and beyond.

“Today I can announce that we’re setting aside over $400 million in the budget to deliver the largest pay increase to our hard-working Defence Force personnel in decades,” he said.

Retention has been a major issue for New Zealand’s military, with over 2,000 regular force members (30 percent) resigning in the last two years, according to Newshub.

As of May, there are a total of over 15,000 NZDF personnel, including 8,800 regular force members, 3,300 reserve forces, and 3,000 civilian members.

“Attracting and retaining more New Zealanders into our defence force means we need to ensure that wages are competitive. This pay boost helps achieve that,” Defence Minister Andrew Little said.

“High rates of staff turnover, as well as increasing calls on the NZDF such as responding to Cyclone Gabrielle, training Ukrainian troops in the UK, and surveillance and patrolling in our region, means our forces are stretched.”

Depending on rank and role, personnel will receive a pay increase between NZ$4,000 (US$2,500) and $15,000 from July 1.

“This increase is four times greater than any previous defence remuneration boost over the past decade. It will go a long way to address attrition issues and make defence a career of choice,” Little said.

“It means 90 percent of NZDF personnel will now be paid at, or close to, market rates.”

Along with the pay increase, the government announced it will also be investing $328 million into upgrading defence assets and infrastructure, including upgrading aviation facilities, improving communications, and constructing new defence buildings and housing.

New Zealand deployments are currently supporting the U.N. peacekeeping mission in Sudan, stability in the Solomon Islands, observing border lines in the Middle East and the Korean Peninsula, providing assistance and training to the Pacific Islands, and training Ukrainian forces in the United Kingdom.

“I can tell you from the conversations with counterparts that our Defence Force personnel are held in the highest regard globally and that their contribution in support of Ukraine is making a difference,” the prime minister said.

“Our soldiers, sailors, and members of our air force also play a vitally important role in supporting us domestically during times of crisis,” he added, referring to the recent Auckland floods and Cyclone Gabrielle.

New Zealand Prime Minister Chris Hipkins speaks to media during a post-cabinet press conference at Parliament in Wellington, New Zealand, on Jan. 25, 2023. Hagen Hopkins/Getty Images

Global Military Spending Is Up

The increased defence budget comes as military spending worldwide has continued to rise.

In 2022, global military spending hit $2.2 trillion, levels never seen since the Cold War, Stockholm International Peace Research Institute (SIPRI) said on April 24.

This increase was concentrated in Europe, which was a 13 percent increase in spending when adjusted for inflation.

“The continuous rise in global military expenditure in recent years is a sign that we are living in an increasingly insecure world,” said Nan Tian, a senior researcher with SIPRI’s Military Expenditure and Arms Production Program.

“States are bolstering military strength in response to a deteriorating security environment, which they do not foresee improving in the near future.”

The United States remained the biggest military spender at $877 billion, which accounts for 39 percent of global spending.

Australia is also struggling with high levels of attrition, prompting the government to offer AU$50,000 (US$34,000) bonus payments to permanent defence force members who have served for a minimum of four years.

In return for accepting the payment, they agree to extend their service in the military for another three years.

Australia’s defence force numbers total at about 85,000 and the scheme is expected to affect around 3,400 people in the first three years.

Veteran affairs advocate Heston Russell said the bonus pay highlighted just how bad the situation had become.

“Most people in the defence force aren’t there for the money, they’re there for the purpose that provides them,” he previously told The Epoch Times. “When you’re starting to throw money at retention in the defence force, there’s clearly a deeper problem.”