P.E.I. MLAs will likely get a two per cent pay increase starting April 1, 2017.

The raise is recommended by the Indemnities and Allowances Commission. The independent commission's report is binding, unless there's legislation brought in that rejects the increase.

MLAs currently make $70,095, without any additional salary, and would make $71,497 starting in April of next year.

The Premier currently makes $146,222 and would make $149,146 after the raise.

The commission made the recommendation based on research of salaries of MLAs in other provinces in the region. The report pointed out that P.E.I. MLAs receive the lowest salary in the region — 80 per cent of the average of legislators in New Brunswick and Nova Scotia.

The commission said it reviewed the Consumer Price Index and P.E.I.'s Gross Domestic Product as well.

The commission is made up of three individuals appointed by the speaker, and is independent of the legislative assembly. Commissioners serve until the assembly in which they were appointed is dissolved, annually reporting their binding decisions to the members of the legislative assembly by Dec. 1 of every year.

The report also said MLA salaries on P.E.I. were frozen for three of the past seven years.

Last year there was a pay increase of 1.2 per cent.

The commission also asked for public feedback in written submissions on MLA salaries.

The feedback said compensation levels are adequate or generous for publicly-elected officials, but also acknowledged annual wage increases are necessary to keep abreast of cost of living increases.