Here's a look at what your N.W.T. MLA is paid, and how it's calculated

Northwest Territories MLAs remain among the highest paid legislators of any Canadian province or territory, despite not voting themselves a pay increase in 20 years.

That's because a law passed by a previous legislative assembly governing their pay and benefits gives them automatic increases each year to insulate them from one of the most pressing matters identified by voters every election: the rising cost of living in the N.W.T.

Last week, MLAs got their second annual cost-of-living wage increase since ending a freeze on their salaries and benefits two years ago. MLAs' basic pay, along with the extra pay they get for serving as cabinet ministers, Speaker, deputy speaker and chairing committees increased by 2.3 per cent.

The basic salary for an N.W.T. MLA is now $107,940.

The non-accountable (no receipts required) expense allowance MLAs receive as part of their pay every two weeks also increased, to $7,778 annually for Yellowknife MLAs, and double that for all other members.

The allowance is expected to cost a total of $157,000 this year. The Canada Revenue Agency considers it income and, on Jan. 1, began charging a tax on it.

Taking into account the expense allowance and northern allowance he's entitled to, Premier Bob McLeod would earn $201,264 if he served this full year as premier.

With higher northern allowances, cabinet ministers Alfred Moses and Robert C. McLeod, both from Inuvik, aren't far behind. Both would get paid $193,805 if they served the full year in their current positions. 

With an election in October, it's uncertain how many of the sitting MLAs and cabinet ministers will receive a full year of pay this year. Robert C. McLeod has already said he will not be running for re-election.

However, salary increases are only one piece of the puzzle. In the territorial government's latest operating budget, the line for MLA salaries and benefits is projected to go from about $5.9 million total in 2017/18 to over $7.2 million in 2018/19, an increase of more than 20 per cent.

According to a government official, the main reason for that increase is the need to keep their two pension funds fully funded.

For two decades, taxpayers have not had to make contributions to the funds because of good returns on their investments.

In 2018/19, $1.26 million in public contributions was required to keep the funds healthy. It's not clear how much will be required this fiscal year.

Automatic pay increase shouldn't be norm: watchdog

MLAs froze their wages and expenses for the first half of this government's four-year term to set an example in times of falling revenues and rising costs.

But the freeze not only set an example, so did the increases that have followed.

The Legislative Assembly calculates the automatic 2.3-per-cent increase that came into effect for MLAs last week will add $107,000 to the cost of members' compensation and benefits this year.

But in recently concluded binding mediation recommendations in an effort to settle a collective bargaining dispute between the government and its 4,000 unionized employees, an identical salary freeze and increases were recommended: no wage increases for 2016 and 2017, 1.6 per cent in 2018, and 2.3 per cent in 2019, effective April 1.

At the time the freeze expired, Yellowknife MLA Cory Vanthuyne, a member of the board that oversees MLA pay and benefits, explained the return to cost of living increases as: "What was normal is what we're going back to."

The Canadian Taxpayers Federation believes automatic pay increases should not be the norm.

"We really want to see elected officials taking a look at what taxpayers can afford," said Todd MacKay, a spokesperson for the federation.

"Every small business owner knows that. They want to give their employees raises, but if business [is] tough, it can't always be automatic."

Sensitive topic

MLA compensation and benefits is a sensitive topic, perhaps because the next territorial election is only six months away.

Last month CBC broadcast a short radio report noting that the total cost of MLAs' pay and benefits is projected to increase more than 20 per cent in 2018/19. 

Speaker Jackson Lafferty took great exception.

"A recent CBC article suggested members of this house are planning to vote themselves a 20-per-cent pay increase in the upcoming fiscal year," said Lafferty in a prepared statement to the legislature.

"This is patently false. In an age when the term 'fake news' has become part of our common vocabulary, it is unfortunate and irresponsible that our public broadcaster has been unable to resist the temptation of gotcha journalism and needless sensationalism."

CBC did not claim that MLAs were planning to vote themselves a pay increase in the story, but said that the cost of "pay and benefits for MLAs increased by 22 per cent this year." At the time, nobody at the legislature was made available for an interview on the topic.

Shortly after the story was broadcast, the clerk of the legislature, Tim Mercer, said neither he nor Lafferty would be answering any questions, doing any interviews or providing any information on any matter to CBC until the story is retracted.

CBC has not retracted the story, but the clerk's office is now providing information to CBC.