MINISTERS AND
MEMBERS OF THE
LEGISLATURE
SALARIES REVIEW BOARD
FINAL REPORT AUG 24
MINISTERS AND MEMBERS OF THE LEGISLATURE
FINAL REPORT 2
SALARIES REVIEW AUGUST 2024
MINISTERS AND
MEMBERS OF THE
LEGISLATURE
SALARIES REVIEW BOARD
FINAL REPORT AUG 24
CONTENTS
1. Introduction
2. Background
3. Political Climate and Nature of Positions
4. Approach
5. Findings
5.1 Bermuda’s Current Economy and Budgetary Constraints
5.2 Being a Member of Parliament
5.3 Ministerial and MP Responsibilities
5.4 The Role of the Premier
5.5 Salary Comparisons
5.6 The Consumer Price Index since 2002
5.7 Community Sentiments and the Bermuda Climate Based on Current and Historic Data
5.8 Pension Consideration
5.9 Other Jurisdictions
6. Conclusions
7. Recommendations
8. Table of Salaries
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MINISTERS AND MEMBERS OF THE LEGISLATURE
1. INTRODUCTION
a. Pursuant to Sections 1A and 1B of the Ministers and Members of the Legislature (Salaries
and Pensions) Act 1975 (the Act), a Board is set up to review the salaries of the Members of
Parliament and the Offices of the Legislature.
b. After consultation with the President of the Senate, the speaker of the House of and the
Leader of the Opposition, Premier the Hon. E. David Burt, JP, MP established a Board known
as the Ministers and Members of the Legislature Salaries Review Board.
c. The current Board consists of the following persons;
i. Hon. Mr. Maxwell Burgess, Chairperson, JP
ii. Mr. Carl D. Neblett LSM, QGJM, QDJM
iii. Mr. N. H. Cole Simons, JP
iv. Mr. Edward Ball Jnr., JP, LLB
v. Ms. Jocene Wade, JP, FCIPD, FCMI
vi. Mr. Steven Holdipp
vii. Mr. Donnie Francis, LLB
2. BACKGROUND
Pursuant to Section 1B of the Act, Functions of the Board –
(3) The Board’s first review shall be carried out as soon as practicable after 1st June 2005, but
not later than six months thereafter.
(4) The Board’s subsequent salary reviews shall be carried out every two years after the date of
its first review.
The Review Board has not convened with the regularity required by the Act as the last review
was conducted in 2019. Prior to that, the Board had last met and reported to the House of
Assembly in 2008.
3. POLITICAL CLIMATE AND NATURE OF
POSITIONS
a. Following the action summarized in the 2019 report and by virtue of reviewing articles in the
media, political blogs, social commentary, and listening to the talk shows, and the House of
Assembly commentaries, it should be noted that the public is severely concerned with the
manner in which the public funds are spent.
b. In addition, the community is also concerned by the fact that more employees of the
International Business and finance sector of Bermuda community are not getting involved in
front line politics, or even public service, and more needs to be done to attract them.
c. In summary, the people are looking for fiscally prudent and qualified leadership.
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SALARIES REVIEW AUGUST 2024
4. APPROACH
The Review Board took the following steps during the process in order to conduct a fulsome
analysis and review of all relevant material on the subject. This would provide a basis for making
an informed and evidenced-based decision. This included the following:
a. Review of the past reports on the issue to understand the factors that were considered and
how they were assessed;
b. Review of the relevant legislation including the Ministers and Members of the Legislature
Salaries and Pensions Act 1975;
c. Assess the current economic, budget and social climate and the likely level of public support
for any changes in the benefits packages for members of the Legislature;
d. Conduct a comparative analysis of salaries and pensions in other jurisdictions that are similar
in key areas such as the number of members of the legislature, the number of officers and the
population size;
e. Assess the current residential appetite for any increase in the salaries and pension payments
of the legislators and how potential changes could be interpreted; and
f. Review the salaries of select Government Quango operations to ascertain any value that may
be applied in this instance.
5. FINDINGS
5.1 Bermuda’s Current Economy and Budgetary Constraints
a. According to Morningstar Dunn and Bradstreet (DBRS), Bermuda’s economy continues to recover
from the pandemic. Growth continues to be driven primarily by the international business sector,
the largest sector of the economy. The tourism sector is also recovering, but more gradually, with
increased air capacity and hotel inventory expected to come online in 2025.
b. The Ministry of Finance estimates that the economy grew 4.0-4.5% in 2023. Economic growth
has been supported in part by the implementation of the government’s post-pandemic
Economic Recovery Plan (ERP), which aims to diversify Bermuda’s economy and build critical
new infrastructure. Early estimates show the government achieving a slight deficit of 0.6% of
GDP in FY 2023/24. Furthermore, the first balanced budget in over two decades is projected
for this fiscal year.
c. Government growth forecasts for 2024 range between 4.3-4.5%. Over the medium term,
Bermuda faces several downside risks to growth. The new corporate income tax may
eventually reduce Bermuda’s attractiveness as an insurance/reinsurance hub, although this
risk is mitigated by Bermuda’s advanced regulatory framework with equivalence in the U.S.
and the EU, its knowledgeable workforce, and high level of competition spurring innovation,
all of which are compelling factors for the insurance industry to remain in Bermuda.
In addition, Bermuda faces an aging and shrinking population, which is coupled with
emigration of the educated workforce being a key contributor.
d. Rising costs of living could also affect affordability for residents and contribute to higher labor
costs, thereby reducing the competitiveness of the tourism and the international business
sectors. We need to remain mindful of the external economic threats and vulnerabilities over
which we have little control.
e. Bermuda’s government debt ratio is projected to slowly decline over the next several years,
even before accounting for potential effects of the new corporate income tax, due to solid
economic growth and the government’s success in consolidating fiscal accounts.
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MINISTERS AND MEMBERS OF THE LEGISLATURE
5.2 Being a Member of Parliament
a. The Board recognises that any Bermudian can volunteer for public service and aspire to
become a Member of Parliament. Not all those who offer themselves are elected as there are
only 36 seats available in Bermuda. That is the protocol in many countries around the world.
There are no specific qualifying criteria to be elected. It is a decision for the voting public.
b. If one is fortunate to be elected by the voters then that individual is then eligible to be
considered as a Minister of the Cabinet. And that MP, now Cabinet Minister is not required to
be equipped with the skills or experience to lead a Ministry of Government and advance its
policy objectives as required.
5.3 Ministerial and MP Responsibilities
a. Members of Parliament that are appointed as a Minister are expected to carry out the
following functions:
i. Policy Development and Implementation: Lead the development and implementation
of government policy within a designated portfolio.
ii. Cabinet Decision-Making: Participate in Cabinet meetings, where key government
decisions are made collectively.
iii. Parliamentary Duties: Be a Member of Parliament (MP) and actively participate in
parliamentary proceedings.
iv. Public Engagement: Represent the government on the Ministry’s portfolio to the public.
v. Media Relations: Manage media inquiries related to the Ministry’s portfolio and
ensure the government’s message is communicated effectively.
vi. To function well in the position, MPs and Minsters will need to demonstrate a
command of some of these skills and competencies:
• trong leadership and decision-making skills;
S
• Excellent communication and interpersonal skills;
• Ability to work effectively under pressure and meet deadlines;
• In-depth knowledge of your designated policy area;
• Strategic thinking and ability to plan for the long term;
• Ability to build relationships and work collaboratively with various stakeholders; and
• Commitment to the core principles of the governing party.
b. The Board accepts that the job requirements go well beyond traditional hours of work.
Some members advise that they are called into service ‘around the clock’ every day of every
week. There are no set hours of work or limitations on the scope of work that the voting
population expect members to understand and address. Anything, anytime from anybody
and anywhere.
c. Members and Ministers are also expected to offer financial assistance to members in their
community and this is a practice that is expected of any incoming MP or Minister. It can
happen at the grocery store, in church or at a local social event.
d. Members and Ministers are also expected to assist with developing the next generation of
political leaders and servants to the community. They are expected to assist with the political
activities of their respective parties which also has a value of time attached.
e. Overall, being a Cabinet Minister or Member of Parliament is a demanding but rewarding
role that offers the opportunity to make a real difference in the lives of citizens, and the
wellbeing of Bermuda.
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SALARIES REVIEW AUGUST 2024
5.4 The Role of the Premier
a. Serving as the Premier is the most senior post as a public servant. The Premier is responsible
for the running of the country including the economy, public safety and food and medical
supplies, etc. It is a most significant assignment.
b. The Premier has all of the roles and responsibilities of MPs and Ministers. In addition, the role
has added responsibilities of overall leadership of the Cabinet, and the role of head of state
for international responsibilities and obligations.
5.5 Salary Comparisons
a. The Board gave consideration to the payment packages offered to industry leaders in the private
sector and across Bermuda, Leaders in the Public Service and Quango Heads. The salary packages
for these leadership positions comfortably exceeds the package for the Premier and Ministers.
b. It was acknowledged that the qualifications to become a member of Parliament and in some
cases, eventually a Minister that is appointed by the Premier are vastly different from the
private sector and the civil service leadership positions. In fact, the Board takes the view that
it is not reasonable to compare the respective roles or the salary packages.
c. The captains of industry and those serving in government leadership posts have
incomparable job structures, requirements, performance management tools and
performance measures. The ability to address low and or non-performance in the private
sector is functionally swift. There are often profit and performance measures that allow
for immediate personnel changes in the private sector. However, in the political arena, the
voters generally go to the polls every five years. That is when there is an opportunity to
address the performance of a Member of Parliament including Ministers.
5.6 The Consumer Price Index since 2002
a. In 2011, the House of Parliament and Senate members elected to freeze their salaries due to
the hardship inflicted on many Bermudian households as a direct result of the downturn in
Bermuda’s economy.
b. The Committee recognised that in 2015 -2017 Bermuda’s economic outlook started to improve
resulting in modest increases in wages and salaries for some workers.
c. The Board reviewed the recent historic record on inflation for the Consumer Price Index (CPI).
The Board was provided with data on the CPI and the annual average percentage change
from 2004 through to 2022. The data shows that the since 2015, the inflation rate has had a
cumulative movement of 18.8%.
5.7 Community Sentiments and the Bermuda Climate Based on Current and Historic Data
a. The Board has a responsibility to assess and consider the sentiment of the Bermuda
community on the matter of MP and Minister salaries as it has proven to be a emotive and
polarizing matter.
b. Although no scientific qualitative survey was completed during this review, the Board was
unanimous that the wider community of Bermuda would not likely support any increase in
salary packages for Members of Parliament and Ministers of Government.
c. The Board is aware that in 2011, Ministers agreed to a salary cut as a show of shared sacrifice
with the wider community impacted by significant economic hardship. The cut was $10% from
a Minister’s annual salary. The public at the time did support and expressed gratitude for the
decision. That reduced salary level still stands today.
d. The Board has considered the role of anecdotal feedback from informal canvassing, social
medial input as well as the volume of public commentary around public policy decisions.
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MINISTERS AND MEMBERS OF THE LEGISLATURE
There is also public concern around the question of value for money with some public
expenditure and corporate tax breaks. Some are concerned about the state of some critical
infrastructure and many are concerned about the cost of living.
e. The Board fully acknowledges the public sentiment that the performance of the government
regarding the economy may be below the expectations of some. However, there are objective
international assessors that review the economic indicators in Bermuda and other related
matters. And their opinion was also considered.
5.8 Pension Consideration
a. The Board adopted the position that Government pensions awards have historically been
adjusted to respond to the impact of the consumer price index (CPI). And the Board’s actions
still support this premise. There were no other issues presented to the Board or considered as
material factors that should influence the outcome pension payments to pensioned Ministers
and Members of the Legislature.
5.9 Other Jurisdictions
a. The Board considered the salary packages for Ministers and Members of the Legislature from
other small nations and commonwealth jurisdictions. It should be noted that there are not
many countries that offer reasonable comparisons to Bermuda given our profile in terms of
the size of the voting population, cost of living and number of parliamentarians.
b. With the support of The Commonwealth Parliamentary Association, the Board did review
the data on some British Overseas Territories as well as some countries in the British
Commonwealth. This included British Virgin Islands, Cayman and Bahamas.
6. CONCLUSIONS
Based on its analysis of the material reviewed and the considerations of the anecdotal evidence
presented to the Board, it has concluded the following:
a. The dedication by Members of Parliament extends beyond the walls of Parliament; they
actively participate in community events, listen to the concerns of citizens, and advocate for
necessary changes. Despite the demanding nature of their roles, MPs work long hours, often
sacrificing personal time to address urgent issues and provide support to their constituents.
b. Since their last salary increase in 2009, the cost of living and the scope of their responsibilities
have significantly expanded. Recognizing their critical contributions and the long-standing gap
in their remuneration, it is both fair and necessary to adjust their salaries to reflect their hard
work, ensuring they are adequately compensated for their invaluable service to Bermuda.
c. The Ministers and Members of the Legislature should be acknowledged for the shared
sacrifice of 2011 when they agreed to an across-the-board salary cut of 10% from Ministers’
annual salary. That cut should be restored by the House of Assembly as it was this body that
authorised the cut at the time.
d. The role of the Speaker of the House of Assembly should be considered just as significant as
that of a Minister of the Cabinet. The Board believes that the duties and responsibilities of the
Speaker are undervalued and should be viewed as adding a more pivotal role to the House of
Assembly and our democracy.
e. The cost of living over the last decade and more has negatively impacted most residents
including our Ministers and Members of the Legislature. The assessment of the CPI indicates
that the cost of goods has increase by about at least 18.8% since 2004 and the appropriate
factor should be applied to current salary levels in order to restore some of the lost buying
FINAL REPORT 8
SALARIES REVIEW AUGUST 2024
power of these very demanding jobs.
f. The factor equivalent to the prevailing CPI value should be applied to the current pension levels
of retirees and tied to the year of their retirement. All pensioned MPs and Ministers should have
their pension payment increased by the appropriate CPI rate depending on the year that each
retired. The pension increase should be back-dated to the date of the last increase for each
pensioner. This increase should be made available as soon as it is practical to do so.
g. It is not fair or reasonable to compare the salaries of the Ministers and Members of the
Legislature with leadership positions in the private sector or within Government including
its Quangos. The positions are not similar in recruitment, qualifying criteria or performance
management or measurement.
h. The Board accepts that the prevailing salary levels available to an MP is likely to remain
an under-whelming factor in the decision to participate in public political life or not. The
tradition of having private sector business leaders actively engaged in the political landscape
may be difficult to replicate going forward. The Board believes the salary is a vehicle to
improve attraction, and appeal to the job and that an additional financial incentive be added
to the current salary package for Members of Parliament.
i. When comparing the Bermuda Salary landscape for elected officials with those in other
jurisdictions, there is little comparative data as the context for Bermuda is quite unique.
Bermuda’s political and economic profile is unmatched in many respects to other small
islands and this makes a reasonable comparison difficult.
j. Politicians are probably the easiest target for public scrutiny and seldom are the rewards
they earn aligned with the effort required to serve well. The public sentiment about value
for money with government expenditure, the need for investment in public assets and the
difficulty in coping with a high cost of living are among the determining factors that the
Board considered alongside the question of any potential increase in the salary levels.
k. It is considered never a good time to consider the question of increasing the salaries of
politicians under the circumstances that dominate the landscape in Bermuda. The Board
believes that once the Legislature is comfortable and agrees on the best way forward, it
should be communicated to the public as soon as possible.
7. RECOMMENDATIONS
Given the set of circumstances considered above, the Board recommends the following changes to
the salary levels of the Ministers and Members of the Legislature as shown in the table below.
a. The Board recommends that Members of Parliament and Senators be granted an 18.8%
increase owing to the changes in the cost of living up to 2024.
b. Members of Parliament be granted an additional $7,000 per year as an additional incentive to
motivate those members of the community that may be interested in serving as a MP and to
encourage current MPs to continue to serve.
c. A Member of Parliament basic salary would increase from $56,023 to $73,555 and Senators
basic salary would increase from $30,367 to $36,076.
d. The Board recommends that the 2011 voluntary cut of 10% to Minister’s salary be reversed and
restored by Parliament as a means of improving the attractiveness of the job. This will mitigate,
in part the challenge of motivating residents to step up into this realm of public service.
e. It is recommended that these revised salary levels be effective April 1, 2025.
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MINISTERS AND MEMBERS OF THE LEGISLATURE
8. TABLE OF SALARIES
Current and Proposed
MEMBERS
TOTAL
OF THE CURRENT PROPOSED COMMENT
PACKAGE
LEGISLATURE
Current + 18.8% for COLA
1 Senators $30,367 $36,076 $36,076
$30,367 + $5,709 = $36,076
Members of
Current + 18.8% for COLA + $7,000 incentive
2 the House of $56,023 $73,555 $73,555
$56,023 + $10,532 + $7,000 = $73,555
Assembly
Officers of the Legislature
Salaries additional to salaries as Senators or Members of the House of Assembly
President of the Current + Proposed Increase for Senators
3 $15,181 $15,181 $51,257
Senate $15,181 + $36,076 = $51,257
The SRB views the Speaker role as equivalent
Speaker, House to that of a Minister in the House of Assembly.
4 $26,569 $100,841 $174,396
of Assembly The Board recommends parity with the HoA
Ministerial Salary $100,841 + $73,555 = $174,396
Vice President of Current + Proposed Senator Salary
5 $3,308 $3,308 $39,384
the Senate $3,308 + $36,076= $39,384
Deputy Speaker,
Current + Proposed MP Salary
6 House of $13,285 $13,285 $86,840
$13,285 + $73,555 = $86,840
Assembly
Current + COLA 18.8%
= 151,262 + 28,437= $179,699
7 Premier $151,262 $170,926 $253,254
Total package = $179,699 + 73,555
(Proposed MP Salary) = $253,254
Current + Proposed MP Salary
8 Deputy Premier $112,942 $112,942 $186,497
$112,942 + $73,555 = $186,497
Minister of Current + Proposed MP Salary
9 $121,010 $121,010 $194,565
Finance $121,010 + $73,555 = $194,565
As a Part-time Current + Proposed MP Salary
10 $60,505 $60,505 $134,060
Finance Minister $60,505 + $73,555 = $134,060
Attorney Current + Proposed MP Salary
11 $147,022 $147,022 $220,577
General $147,022 + $73,555 = $220,577
Other Ministers Current + Proposed MP Salary
12 in House of $100,841 $100,841 $174,396 = Total for Ministers in the House
Assembly $100,841 + $73,555 = $174,396
As a Part-time Current + Proposed MP Salary
13 $50,421 $50,421 $123,976
Minister $50,421 + $73,555 = $123,976
Other Ministers Current + Proposed Senator Salary
14 $100,841 $100,841 $136,917
in the Senate $100,841 + $36,076 =$136,917
As a Part-time Current + Proposed MP Salary
15 $50,421 $50,421 $123,976
Minister $50,421 + $73,555 = $123,976
Opposition Current + Proposed MP Salary
16 $30,367 $30,367 $103,922
Leader $30,367 + $73,555 = $103,922
Junior Ministers
Current + Proposed MP Salary
17 in the House of $11,387 $11,387 $84,942
$11,387 + $73,555 = $84,942
Assembly
Junior Ministers Current + Proposed Senator Salary
18 $11,425 $11,425 $47,501
in the Senate $11,425 + $36,076 = $47,501
Current + Proposed MP Salary
19 Party Whips $7,593 $7,593 $81,148
$7,593 + $73,555 = $81,148
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SALARIES REVIEW AUGUST 2024
Signed on behalf of the Board:
Hon. Maxwell Burgess, Chairperson, JP
Mr. Carl D. Neblett, LSM, QGJM, QDJM
Mr. N. H. Cole Simons, JP
Mr. Edward Ball Jnr., JP, LLB
Ms. Jocene Wade, JP, FCIPD, FCMI
Mr. Steven Holdipp
Mr. Donnie Francis, LLB
Date:
11 FINAL REPORT
OFFICERS AND MEMBERS OF THE LEGISLATURE SALARIES REVIEW | FINAL REPORT | AUGUST 2024
