In a rare alignment, the Taxpayers' Union and the Green Party are on the same page.

The right wing lobby group likes the Greens' new policy for performance pay for MPs - up to a point.

Earlier today, the Greens launched a new policy to link MPs' salaries to the median income, to make sure that MPs' salaries are part of the solution to rising inequality, rather than part of the problem.

Under this policy, MPs salaries would increase or decrease by the same dollar amount that the median individual income increases or decreases.

Rather than the current annual review carried out by the Remuneration Authority that sets MPs' salaries, the Remuneration Authority would be required to apply the annual change in median individual income supplied by Statistics New Zealand.

"The Green Party thinks that MPs' salary increases or decreases should be directly linked to the movement in the incomes of middle New Zealand," Green co-leader Russel Norman said.

Responding to the announcement, Taxpayer's Union executive directoir Jordan Williams said, "Finally a political party is recognising the need to tie MPs' pay to the country's performance. While we would prefer MPs' pay to reflect changes in GDP, the policy is a step in the right direction."

Over time, the Green's policy would reduce MPs' pay relative to the average taxpayer who foots the bill, Mr Jordan said.

"It would also mean MPs' pay would reduce if household incomes do. It would remove the effective ratchet clause currently in place. We welcome that aspect."