New Zealand Prime Minister Jacinda Ardern has announced today that she, along with government ministers, will take a 20% pay cut for the next six months.

The pay cut will help save money at a time when economies around the world are being heavily affected by the coronavirus pandemic.

"Today, I can confirm that myself and government ministers and public service chief executives will take a 20% pay cut for the next 6 months, as we acknowledge New Zealanders who are reliant on wage subsidies, taking pay cuts, and losing their jobs as a result of the Covid-19 global pandemic," Ardern said at a news conference, according to CNN.

"While it in itself will not shift the government's fiscal position, it is about leadership and I acknowledge my colleagues both in the executive and also the colleagues we work with in the public service for the decision that was taken today."

New Zealand has so far reported 1,386 Covid-19 cases and nine deaths.