Yukon MLAs could be in store for a hefty raise come Jan. 1.

Patrick Michael, the former legislative assembly clerk, released a commission report on MLA salaries and benefits Wednesday in the legislature.

He proposes increases in all areas except for expense allowances. They would fall to $12,500 from $19,492 annually for rural MLAs and $17,019 for Whitehorse MLAs.

Michael explained this morning the decrease in expenses is proposed because certain expenses are now covered in other areas.

It's recommended MLAs make $65,000 as a base rate per year compared to the current rate of $38,985, before the additional amounts they receive.

Those amounts include expense allowances and higher salaries for ministers, the speaker, deputy speaker, the premier, leader of the official Opposition and leader of the third party.

Currently, the territory has the lowest assembly wages in the country.

Ontario is the highest, at $113,100 annually for a base, while the average sits at $75,265.

The 11 recommendations propose that expense allowances be set at $12,500 a year with no difference given to which riding an MLA is from.

Annual salaries for various offices would increase by an additional $50,000 for the premier, $35,000 for the leader of the official Opposition, $15,000 for the leader of the third party, $35,000 for ministers, $25,000 for the speaker and $10,000 for the deputy speaker.

The report notes many salaries for the offices held now are less than they were in 1979, the year after the introduction of party politics replaced the non-partisan territorial council.

The premier was then making $28,971. Taking into consideration inflation and the cost of living over the last 28 years the premier's salary today would be equivalent to $29,000 in 1979.

Ministers, by comparison, are making less today than they would have made in 1979, when they were receiving $28,971 annually.

Following an election, the premier-designate would begin being paid the premier's salary.

Under Michael's proposals, salaries would be adjusted to fall in line with the Consumer Price Index every April 1.

Pension plans would also be adjusted, with expense allowances being removed from the definition of personable remuneration.

Meanwhile, severance allowances would be based on the amount members received in their final year in office. MLAs who had five years or fewer would receive a lump-sum payment equivalent to 25 per cent of their annual salary. Members of five to eight years service would receive 50 per cent and members of more than eight years would have a severance package of a full year's salary.

Under the recommendations, the Legislative Assembly Act would be changed to give the commissioner in executive council the authority, following a recommendation of the Members' Services Board, to set the maximum amounts for the number of trips, travel and accommodation costs under the act.

The Members' Services Board would also have the authority to establish policies and make orders around paying allowance, benefits or expenses to legislative assembly members.

Recommendations would also see the Legislative Assembly Act amended to require the board to decide whether to appoint an MLA salaries and benefits commission after each general election.

If a commission was created, the board would be required to establish the mandate of the commission and make its appointment within six months of the decision.

Michael noted in the report that if the recommendations are accepted, the timing of the changes coming into effect must be considered.

'It will be recognized that there is a linkage between the recommendations respecting members' pay and the members' pension plan,' the report reads.

'If these recommendations are accepted, attention must be paid to the timing of the coming into force of required amendments to the Legislative Assembly Act and the Legislative Assembly Retirement Allowances Act.'

Michael went on to suggest the changes come into effect Jan. 1.

The cost of the changes would be an additional $520,000 annually, Michael said.