MPs and Senators get salary boost as Aussie retail and hospitality workers brace for penalty rate cut

Scott Morrison’s yearly salary will increase to a whopping $538,000 after MPs and Senators were granted a pay rise, as Aussie retail and hospitality workers brace for a penalty rate cut.

Federal MPs have been granted a two per cent pay rise from July 1, just as 700,000 retail and hospitality workers are set to have their penalty rates cut.

The independent Remuneration Tribunal said in its decision - which relates to all public offices in its jurisdiction including federal judges and public servants - it had taken into account economic restraint, lower wage growth more broadly and the government’s public sector workplace bargaining policy.

‘No chance against PM’: Albanese’s major image problem

Doctors rush to see Assange in jail

Labor signals shift in economic policy

Federal MPs have been granted a two per cent pay rise from July 1. Picture: Kym Smith

“The tribunal notes that various indicators predict that wage growth is expected to increase gradually, lagging economic growth,” it said on Thursday.

“Wage growth has increased modestly over the past year, with reliable measures indicating private sector wage growth is now equalling or outpacing the public sector.”

Prime Minister Scott Morrison is expected to receive a bump of just over $10,000 a year on top of his current $538,460.

MPs and Senators currently get a base annual salary of $207,100, with the increase bringing their yearly pay packet to about $211,000.

The pay increase comes just as 700,000 retail and hospitality workers are set to have their penalty rates cut. Picture: iStock

United Voice secretary, Jo-anne Schofield, said workers in the hospitality industry could lose as much as $2000 a year when further penalty rate cuts come into force on July 1.

“Working people need jobs that are secure and pay them fairly - not more cuts that stop them from being able to pay for life’s essentials,” she said in a statement.

The average hospitality worker earns $20.91 an hour for weekday shifts.

The next 10 percentage point penalty rate transition in the new financial year will mean weekend hospitality workers will have lost $40 a week.

The Fair Work Commission recently announced a 3 per cent increase to the minimum wage, lifting it from $719.20 to $740.80 a week.

Originally published as MPs and Senators get salary boost as Aussie retail and hospitality workers brace for penalty rate cut