Federal politicians, senior public servants, judges win pay rise

Politicians, senior bureaucrats and judges have won a pay rise despite a review noting low wage growth across the economy.

Malcolm Turnbull and his federal political colleagues have been awarded a pay rise. Picture: Kym Smith

Australia’s federal politicians — along with the nation’s most senior public servants, agency heads and judges — have been awarded a 2 per cent pay rise as of July 1.

The decision by the independent Remuneration Tribunal means that the most senior public office holders in the country will have received a 6 per cent pay boost in their pay packets over the two-and-a-half year period from January 2016.

Previous pay rises included an increase of 2 per cent in July 2017 as well as an increase of 2 per cent in January 2016.

The decision means that Malcolm Turnbull’s annual salary will rise to $538,460 next month.

The Tribunal noted the decision to award a 2 per cent pay rise in July 2018 came at a time of low wage growth across the economy.

However, it said the decision was consistent with the increases that were allowed under the government’s new workplace bargaining policy released in February 2018.

“The Australian Bureau of Statistics (ABS) seasonally adjusted March 2018 wage price index figure was 2.1 per cent,” the Tribunal noted.

“Seasonally adjusted private sector wages rose 1.9 per cent and public sector wages grew 2.3 per cent”.

“In Federal Enterprise Bargaining, the trends over 782 new agreements struck in the December quarter of 2017 show average increases of 2.5 per cent, up 0.3 points on the previous quarter, with private sector increases averaging 2.6 per cent (up 0.2 points)”.

The Fair Work Commission awarded an increase to the minimum wage and award minimum wages of 3.5 per cent as of July 2018.