New Zealand Defence Force personnel are set to receive a pay rise from July in a bid to combat high staff turnover, the Government has announced.

It means roughly 90% of defence force personnel "will now be paid at, or close to, market rates", Defence Minister Andrew Little said.

Today's announcement brings the total amount invested in defence to $4.7 billion since 2017 – double what the previous government had spent.

Little said he was confident the wage increase will help attract and retain staff.

"High rates of staff turnover, as well as increasing calls on the NZDF such as responding to Cyclone Gabrielle, training Ukrainian troops in the UK, and surveillance and patrolling in our region means our forces are stretched," he said.

t comes after the defence force lost "about 10% of our NZDF personnel, which is roughly about 800" in the past year, Little said.

In late 2021, the New Zealand Army saw a spike in soldiers leaving the force, due in part to burnout from manning Covid-19 isolation facilities.

Little said the pay increase is "four times greater than any previous defence remuneration boost over the past decade".'

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"By investing over $419 million to boost the defence payroll we can continue to maintain, and attract, the skills, experience and expertise our personnel provide at home and abroad, as well as addressing cost of living pressures.

"We have a moral obligation to ensure our soldiers, sailors and aviators are fairly paid for the critical and often dangerous work they do, and the government takes that responsibility seriously on behalf of all New Zealanders.

"Defence personnel contribute to a more peaceful and secure world both on and offshore. With climate change and an increasingly contested geo strategic environment including in our Pacific neighbourhood it is important that New Zealand has the personnel and equipment to play our part in supporting global peace and security."

A further $328 million will be invested in upgrading Defence Force assets and infrastructure as part of Budget 2023.

Of that figure, $90 million will go towards upgraded aviation fuelling facilities at Ohakea, and $93 million will be earmarked for providing "world-class communications to our frigates and new Bushmaster protected mobility vehicles", Little said.

A further $85 million will be set aside to improve defence force housing, including up to 50 new buildings at the Waiouru military base, and a renovation pilot for 13 properties at the Burnham, Linton and Ohakea bases.

"Many personnel and their families are asked to move between bases to serve and it is important the housing provided is suitable to support them to do their jobs," he said.

Remuneration uplifts are expected to take effect from July 1, 2023.

https://www.beehive.govt.nz/sites/default/files/2023-05/Vote%20Defence%20and%20Vote%20Defence%20Force%20more%20information.pdf