The increases were approved by a 7-4 vote at a full council meeting in an environment where such fee hikes have caused bitter public backlash recently.
Contact Energy took a lashing from its customers after its board sought to increase the pool from which directors fees were paid from $770,000 to $1.5 million.
While the council rises are lower - total payments will increase from $732,239 to $823,197 and are split between 23 people holding 45 directorships with eight companies - councillors again called for them to remain at current levels.
The directors of Dunedin City Holdings Ltd and its seven companies were approved pay rises at a finance and strategy meeting on October 20, subject to approval by the council.
The rises adjusted rates to reflect similar positions in other parts of New Zealand, minus a 25% "community service discount" which reflects the service aspect of the roles.
A full council meeting yesterday rubber-stamped the rise, but councillors repeated their calls to show leadership by saying `no'.
Richard Walls, Kate Wilson and Paul Hudson withdrew from the debate, as all have directorships.
Fliss Butcher said she could not vote for the increases, as "everyone is trying to find ways to tighten their belts" because of poor economic conditions.
But Colin Weatherall disagreed.
"The directors are working a bloody sight harder now," he said.
Neil Collins, who first raised the issue at the finance and strategy meeting, said he supported the directors and the work they did, but with people struggling in the community, everyone, not just the council, should show restraint.
Now was not the time to go to ratepayers to say more money was needed, "even though we are playing catch-up" to pay the directors rates similar to those in other parts of the country.
Dave Cull said the rise should reflect the rate of inflation - no more - but Deputy Mayor Syd Brown said it had been agreed three years ago to increase the fees over that period.
"Three years ago, we had a look at this [the pay rates] and found we were so far behind it was an embarrassment."
Because of the 25% "community service discount", the fees were still below national rates.
Crs Weatherall, Brown, Bill Acklin, Michael Guest, Andrew Noone, Chris Staynes, and the Mayor, Peter Chin, voted for the increases, while Crs Butcher, Collins, Cull and Teresa Stevenson voted against.
