Prime Minister John Key has welcomed the decision by the Remuneration Authority that there will not be an increase in parliamentary salaries.

The Remuneration Authority has reviewed the pay and allowance rates of MPs and has determined that there should be no adjustment this year.

"This is a wise decision and one that is in line with the wishes of all political parties in Parliament," says Mr Key.

"While legislation is still going through the House to allow the Authority to take heed of the economic climate when determining MPs' salaries, it is pleasing that they have chosen to act before that legislation is implemented.

"As I said in January when I raised this issue with the Authority, it is only right that in these changing economic times, as ordinary New Zealanders tighten their belts, MPs and Ministers must also play their part."

The determination is deemed to have come into effect on 1 July 2009 and expires on 30 June 2010.