Federal politicians score biggest pay rise in a decade

Under the 2.75 per cent pay bump, the average backbench MP will now be on $217k and Prime Minister Anthony Albanese’s pay packet will total $564k.

Prime Minister Anthony Albanese’s pay packet will now total $564,000 under a new pay increase. Picture: Monique Harmer

FEDERAL politicians have been handed their biggest pay rise in a decade, the day before the workplace umpire decides whether to lift wages for Australia’s lowest paid workers.

From July 1, all federal MPs will receive a 2.75 per cent pay bump, based on the determination of the independent Remuneration Tribunal unveiled on Tuesday.

This means the average backbench MP will now be on $217,060 plus their allowances.

Anthony Albanese’s pay packet will total $564,364 after receiving a raise of $15,104.

Peter Dutton will be paid $401,561 in his new role as the Opposition Leader, while Greens leader Adam Bandt will earn $314,737.

Those filling the key parliamentary posts of Speaker of the House of Representatives and Senate President - which will soon be decided by the Prime Minister - will cash in $379,855 a year.

Greens leader Adam Bandt will earn over $300k Picture: Josh Woning

As Leader of the Opposition Peter Dutton will be paid $401,561. Picture: Richard Walker

The new Albanese government has been pushing for Australians on the minimum wage to receive a pay rise that matches the current inflation rate of 5.1 per cent.

The Fair Work Commission will hand down its decision on Wednesday, after Reserve Bank Governor Philip Lowe revealed on Tuesday night that he expected inflation would hit 7 per cent by the end of the year.

Federal MPs did not receive a pay rise in 2020 or 2021, having been awarded 2 per cent raises in the three years before that.

The Remuneration Tribunal said its decision was based on the current economic conditions as well as trends in public and private sector remuneration.

The increase means that even backbenchers earn more than 96 per cent of men and 98 per cent of women aged over 15, according to an income calculator from the Australian Council of Social Service and the University of New South Wales.

Politicians elected before 2004 also receive taxpayer-funded pensions upon their retirement, while those elected after 2004 are paid an extra 15.4 per cent on their salary in superannuation contributions, compared to the current standard rate of 10.5 per cent.