An independent report says New Brunswick's politicians should make more money, but that they should pay income tax on all of it.

In a report delivered to the standing committee on legislation administration on Thursday, the MLA compensation review commission says that New Brunswick can afford to give the politicians a raise — and that increase might make public office more attractive for capable people.

The proposed enriched payment structure would eliminate the MLA's tax-free allowance, which currently makes up a significant portion of their annual salaries.

"The practice should be brought to an abrupt end," compensation commissioner Patrick Ryan writes in the report. "It is unpopular with the public; obscures the true value of the payment and is out-of-step with most provinces and payments to members of the House of Commons."

Alberta, Quebec and Saskatchewan continue to offer the members of their legislatures a tax-free allowance while the other provincial jurisdictions have discontinued the practice.

Currently, New Brunswick's elected representatives earn a base salary of $45,347 and a non-taxable allowance of $22,534.44. Added together and adjusted for taxes, that would be about the same as being paid a salary of $81,758.

The report recommends that the tax-free allowance be eliminated and the salary of an individual MLA be increased to $85,000.

Under the proposed guidelines, the premier would get a raise of $18,265, to $79,000 in addition to his base pay as an MLA. It would mean a combined salary of $164,000 — the seventh-highest salary among Canada's premiers. Ontario's premier receives the most money, $202,788, while Manitoba's premier is the lowest paid at $124,509.

Under the new formula, cabinet ministers would get a $12,124 boost in wages, for a salary of $137,614. The Opposition leader's salary would be raised $14,810 for an annual pay of $140,300. The Speaker's salary would increase by $22,245 for a total of $137,614.

New Brunswick's politicians are among the lowest paid in the Canadian provinces. Ontario's elected representatives have the largest pay cheques at $113,100 while those in office in Prince Edward Island are the lowest, receiving $62,500 annually.

The recommended increases were calculated using a formula that took into account the relative increase in New Brunswick residents' salaries compared to the national average over the past 20 years.

Despite the recommendations, the report goes on to suggest that current MLAs who don't like the proposed new pay structure be allowed to continue to be paid as they are now under a grandfather clause if the changes are accepted.

Ryan's report also recommended mandatory sanctions be established against MLAs who are absent from their duties without explanation and that the legislature change the pension plan of its MLAs.

Currently, politicians are required to sit eight sessions in the legislature before they are entitled to a pension. Ryan's report suggests that be changed to give pensions to members who have served six years in office.