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Federal politicians set to get a four per cent pay rise

Federal politicians set to get a four per cent pay rise

Federal politicians are set to get their largest pay rise in a decade under a new decision by the Remuneration Tribunal.

All federal representatives will get a four per cent increase to their wages, set to come into effect across the board from September 1.

It is the largest increase the tribunal has decided on in a decade.

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For five years out of the past decade, MPs have not had an increase to their salaries.

During those years that MP wages did increase, none of those rises exceeded three per cent.

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From 3.57pm Friday, millions of Australians were ‘working without pay’

Wage increases in the public and private sector were considered by the tribunal when making its decision.

Across the country, workers have experienced an average salary increase of 3.6 per cent.

Workers in the public sector received a 3.1 per cent average increase to their salaries, while those in the private sector had an increase of 3.8 per cent, according to data from the Australian Bureau of Statistics (ABS).

Commonwealth employees are set to get a total pay increase of 10.5 per cent over the next three years.

Federal politicians are set to receive a four per cent increase to their salaries under a new decision by the Remuneration Tribunal. Credit: AAP

Previous increases to MP salaries have been “conservative”, the tribunal said.

The total increase to MP salaries in the past decade has totalled 14.75 per cent, as opposed to those in the private sector, which have increased 23 per cent.

Current economic conditions across the country factored into the decision to increase MP salaries.

MPs should be paid a “competitive” salary that is equal to the responsibilities and experience required for the role, and that would attract and retain “people of calibre”, the tribunal said.

But MPs should not expect their salary to compare to that of those in the private sector, the tribunal said.

The wage increase does not include allowances such as travel expenses.

What the increase will look like

The base salary for MPs will rise from about $217,000 to about $225,000.

Prime Minister Anthony Albanese will see his salary rise from about $564,000 to about $586,000.

Deputy Prime Minister Richard Marles’s salary will increase from about $444,000 to about $462,000.

Treasurer Jim Chalmers will have his salary rise from about $406,000 to about $423,000.

Speaker of the House of Representatives Milton Dick’s salary will increase from about $379,000 to about $395,000.

Opposition leader Peter Dutton’s salary will rise from about $401,000 to about $417,000.

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