Federal politicians in Australia are to receive their biggest pay rise in nearly a decade with all public offices to receive a 4 per cent increase.
The decision was made after The Remuneration Tribunal, the body in charge of the parliamentary pay reviews, said they had made “conservative” increases in the past, which were not up to date with Australia’s “economic conditions”.
The Remuneration Tribunal in a report said “In conducting its review of remuneration, the Tribunal takes account of economic conditions in Australia, past and projected movements in remuneration in the private and public sectors.”
“Remuneration data in general reflects a continued period of increasing wage growth across the economy.”
“The Tribunal’s primary focus is to provide competitive and equitable remuneration that is appropriate to the responsibilities and experience required of the roles.”
The recent increase in the minimum wage was listed as a key factor for the pay rise, as well as inflation.
“While the Tribunal is required under its legislation to have regard to these decisions, it considers a wider range of factors in its review,” the report said.
With the increase, the base salary of an MP will rise from $217,000 to $225,680. Prime Minister Anthony Albanese’s salary will go from $564,200 to $586,768 while opposition leader Peter Dutton’s salary will increase from $401,450 to $417,508.
The wage price index has increased by 3.6 per cent for the average Australian. The private sector saw a 3.8 per cent increase, while the public sector saw a 3.1 per cent increase.
Federal politicians had in September 2022, received a 2.75 per cent increase.
The wage increase does not include various government allowances, such as a travel allowance.
Federal Members will start seeing an increase from September 1. The pay rise was implemented for other members of public office from July 1.