The Remuneration Authority is frustrated by the lack of flexibility surrounding the MP pay formula.

MPs' salaries and allowances are being frozen for a year, while the Government works out a fairer formula for increases.

The current formula means the authority is stuck with a particular number regardless of the economic conditions and is unable to use any judgement when it comes to the salaries.

Remuneration Authority chairwoman Dame Fran Wilde hopes the Government will opt for a non-formula based approach.

Jacinda Ardern told Mike Hosking the Government may also look at how often MPs' pay is reviewed.

"At the moment it happens every year. most agreement we negotiate at the moment will lock in for a three year period."

LISTEN ABOVE AS JACINDA ARDERN SPEAKS WITH MIKE HOSKING