Victorian Independent Remuneration Tribunal says it was ‘particularly mindful of the current financial position of … the State of Victoria’

Jacinta Allan has cemented her status as the nation’s highest-paid premier while the base salary for Victorian backbench MPs has jumped to $212,000.

The Victorian Independent Remuneration Tribunal released its annual determination on Monday. Picture: Aaron Francis

Jacinta Allan’s pay packet has topped half a million dollars for the first time, cementing her place as the nation’s highest-paid premier.

The generous boost has been delivered as part of a 3 per cent pay rise for Victorian MPs.

The Premier’s total annual package is now worth $512,972, including an almost $65,000 expenses allowance.

It marks at least a $70,000 bump to the Premier’s pay cheque since before the Covid pandemic.

Jacinta Allan’s salary as Premier has soared above half a million dollars. Picture: Ian Currie

The Victorian Independent Remuneration Tribunal on Monday released its annual determination, ruling on a 3 per cent increase from July 1.

Deputy Premier Ben Carroll’s take-home pay is now more than $400,000 for the first time, as well as a generous expenses package of $24,652.

Opposition Leader Brad Battin’s pay packet is now more than $409,000, including expenses. Backbench MPs with no extra responsibilities will see their pay jump from $205,798 to $211,972, with allowances increasing by 2.3 per cent.

Brad Battin’s salary increased to $409,000. Picture: Nadir Kinani

The pay increase, while less than last year’s 3.5 per cent, comes amid cost-of-living concerns Ms Allan has said are a focus for her government.

In making its determination, the tribunal considered current and projected economic conditions and Victoria’s financial position.

In its May budget, the government confirmed the state’s net debt would continue to climb to a record $194bn by 2028-29.

By that time, it would account for a quarter of Victoria’s overall economy and Victoria would be paying $28.9m a day in interest costs.

Victorian MPs have locked in a 3 cent pay rise. Picture: Nadir Kinani

In a statement of reasons for its decision, the tribunal said the increase was less than the 3.5 per cent uplift in the minimum wage set by the Fair Work Commission.

“The tribunal was particularly mindful of the government’s wages policy, the current financial position of the state of Victoria and recent annual movements in wages and prices in Victoria,” it said.

“In making adjustments to the value of other work-related allowances for MPs, the tribunal gave particular consideration to relevant price movements in the Victorian economy.”