Politicians get second-biggest pay raise in last decade

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Federal politicians have been handed their second-biggest pay rise in the last decade by the independent body that decides MPs' pay.

The Remuneration Tribunal ruled yesterday that parliamentarians would see their salaries grow by 3.5 per cent on July 1, inflating the base rate for MPs from $225,750 to $233,650 – an increase of just under $8000 a year.

Prime Minister Anthony Albanese will get a raise of about $21,000, with his salary rising from $586,950 to $607,490, while Opposition Leader Peter Dutton gets to take home $432,260, a roughly $15,000 increase on his previous pay of $417,640.

The 3.5 per cent increase is the second-largest raise handed to federal MPs in the last decade, behind only last year's rise of 4 per cent.

Federal parliamentarians had been handed raises of between 2 and 2.75 per cent between 2016 and 2022, while their salaries had remained flat in 2015, 2020 and 2021.

The Remuneration Tribunal is forced to consider the Fair Work Commission's annual wage reviews in its decision.

The FWC handed about 2.6 million workers a pay rise of their own when it increased the minimum wage by 3.75 per cent.

"The remuneration increases ... awarded to offices in its jurisdiction over the past decade have been modest," the Remuneration Tribunal wrote.

"Including the current decision, the cumulative total of remuneration increases awarded by the tribunal since 2015 amounts to 18.25 per cent.

"In contrast, remuneration increases more generally in the public and private sectors (based on overall March WPI data from 2015-2024) have equated to 24.4 per cent."

In justifying its decision, the tribunal said it was important to offer large salaries to attract accomplished people to parliament.

"The tribunal's primary focus is to provide competitive and equitable remuneration that is appropriate to the responsibilities and experience required of the roles, and that is sufficient to attract and retain people of calibre," it wrote.

"Many of these office holders do not expect or require that monetary compensation for their roles in the public sector be set at private sector levels.

"Rather, office-holders serve for the public good and the opportunity to influence economic and social policy initiatives."