Tauranga City Council's salary budget will increase this year following a review of its remuneration strategy designed to assist recruitment and retention of quality staff.

Council says it has spent several years reviewing its remuneration strategy, with input from the Public Service Association - PSA - and external remuneration professionals. The aims of the review were to increase the transparency of decisions affecting remuneration, ensure that staff are paid fairly and that pay rates are competitive.

Commission Chair Anne Tolley says the review and resulting salary increases will play a crucial role in the council's ability to deliver on the city's Long-term Plan.

'Over the next nine years, we will deliver the most ambitious Long-term Plan this city has ever seen. We have a huge amount of work ahead of us to ensure this community gets the city it deserves," says Tolley.

'We need to ensure we can retain and attract the right people, with the right skills, experience and commitment to do the mahi. We're competing with businesses from around New Zealand, and the rest of the world, to attract and keep that talent. Competitive remuneration is essential in making the council an attractive place to work, and the review has shown we have lost some ground in that regard."

As part of the review, all jobs were evaluated externally to ensure the remuneration for each job is appropriate.

The council will also change the way the salary range for each job grade is calculated. This aims to reduce the disparity between public and private sector salaries, particularly in the areas where local government salaries are seen as less competitive in the employment market.

Changes will be introduced through this year's annual salary review. An additional 8 per cent has been budgeted through the Annual Plan to fund the salary increases and an increase in the council's annual leave provision. Additional funding has also been budgeted for new roles which are required to deliver the long-term plan work programme.

Key remuneration changes:

• A minimum salary increase for all staff of 4 per cent.
• The minimum salary of any full-time employee will increase to $55,000 – more than 10 per cent above the current living wage, which increases to $49,000 later this year.
• Additional increases as required to bring people to the correct point in the salary range for their job grade.
• Minimum five weeks annual leave for all staff, regardless of position and service.