Wellington: New Zealand Prime Minister Jacinda Ardern has announced a 20 per cent pay cut for her cabinet in the next six months to reflect the tough economic conditions during the COVID-19 crisis.

"This is not going to change the government books but for us it's about leadership," she said.

"It's an acknowledgement of the hit many New Zealanders are taking right now."

Prime Minister Jacinda Ardern discusses the government's COVID-19 response. Credit:Getty Images

The pay cut will affect every minister, as well as chief executives within the public service.