This was published 4 months ago
Victorian politicians get 3.5 per cent pay rise
By Rachel Eddie
Victorian politicians will receive their second 3.5 per cent pay rise in two years, pushing Premier Jacinta Allan’s salary to $435,434 from Monday.
The premier’s salary will nudge half a million dollars, sitting at $498,031, once another $62,597 in expenses is tallied in.
Premier Jacinta Allan’s salary has increased to almost $500,000, including expenses.Credit: Joe Armao
Backbench MPs will have a base salary of $205,798 under the Victorian Independent Remuneration Tribunal’s determination, which takes effect on Monday – the same day it was announced.
The government does not set salaries for politicians. The tribunal was established by the government in 2019 to stop politicians from determining their own salaries.
“Salary adjustments for members of parliament are a matter for the Victorian Independent Remuneration Tribunal, a body we established, so these decisions are made independently and at arm’s length of government,” a government spokeswoman said.
While salaries and expenses will increase by 3.5 per cent, electorate allowances and travel allowances will grow by 3.6 per cent. Driving allowances are being hiked 3.4 per cent, and the budget for electorate offices and communications will increase by 6.1 per cent per voter.
Greens leader Ellen Sandell submitted MPs’ salaries should not exceed the public sector wage cap.Credit: AAP
Several submissions to the tribunal argued MPs’ salaries should be reduced, frozen or increased by 3 per cent only.
Greens leader Ellen Sandell had argued in a submission that MPs’ salaries should not exceed the public sector wage cap, which is set at 3 per cent. But she also said crossbench MPs had insufficient staff and resources.
In its determination on Monday, the tribunal said: “The tribunal also noted the Fair Work Commission’s 2024 decision to increase the national minimum wage and modern award minimum wages by 3.75 per cent and recent remuneration adjustments for members of parliament in other Australian jurisdictions, which ranged from no change in NSW to a 4 per cent increase for Queensland MPs.”
Real wages had remained unchanged in Victoria in the year to March, the tribunal said, and that recent rampant inflation was expected to slow in the coming years.
The tribunal also considered Victoria’s financial position, which is hurtling towards $188 billion in net debt by 2028, and will leaving taxpayers with a daily interest bill of $26 million.
While Victorians, like people in all other states and territories, are under significant cost-of-living pressures, the state’s public hospitals are also struggling under a budget crisis.
The Age last week revealed that the state’s largest network, Monash Health, has been asked to carve about $200 million out of its operating expenses.
Alfred Health chief executive Andrew Way told staff in an all-staff email that simple things like turning the lights off when they left a room would cut spending.
Northern Health and Western Health have also imposed immediate hiring freezes in response to demands from the Allan government to find savings.
Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter here.