Victoria must be so happy with this blokeVictorian Premier to become highest-paid state leader as tribunal grants pay rise for MPs
Updated
Photo: The tribunal sets pay levels for Victoria's MPs and senior public servants. (AAP: Joe Castro)
Premier Daniel Andrews will become the highest-paid state leader after he was handed a $46,522 pay rise by an independent tribunal, which has also granted an 11.8 per cent pay rise to Ministers and the Opposition Leader.
Key points:
- All MPs will now be paid a basic salary of $182,413 on the back of a 3.5 per cent pay rise
- The determination is the first by the newly formed Victorian Independent Remuneration Tribunal
- The Premier will be the highest-paid leader in the country at $441,439, behind only the Prime Minister who is paid $549,250
The determination is the first by the newly formed Victorian Independent Remuneration Tribunal, which was set up this year to determine the salaries and allowances of MPs and senior public servants.
The Andrews Government established the tribunal in the wake of the expenses scandals involving former speaker Telmo Languiller and former deputy speaker Don Nardella.
A Government spokesperson said the decision was made by the Independent Remuneration Tribunal.
"These decisions should not be made by politicians and in Victoria, we've made sure they never will again," the spokesperson said.
All MPs will now be paid a basic salary of $182,413 on the back of a 3.5 per cent pay rise.
An existing $13,000 expense allowances has also been rolled into their salary.
The 11.8 per cent rise will be delivered with a 7 per cent pay rise from today and another 4.8 per cent on July 1, 2020.
The pay rise comes as the Andrews Government holds firm on its policy to only offer 2 per cent increases to public sector unions, which has enraged the labour movement.
The independent tribunal's ruling makes Victorian MPs the third-best paid in the country. By law, they cannot be paid a bigger base salary than federal MPs.
But the Premier will be the highest-paid leader in the country at $441,439, behind only the Prime Minister, who is paid $549,250.
All MPs are paid the same salary, with those performing higher duties given a percentage of the basic rate.
For example, the Premier is paid 100 per cent extra of the base rate.
Ministers and the Opposition Leader are also receiving a pay rise of 11.8 per cent to reconcile the changes to the expense allowances. From July next year, they will pocket $352,057.
The tribunal is also keeping the car allowance, with MPs entitled to collect either $20,000 or $30,000 in a motor vehicle allowance depending on the size of their electorate.
MPs also are given an electorate allowance which the tribunal decided not to modify.
Current rates are:
- $40,367 per year for Members representing an electorate less than 500 square kilometres
- $43,830 per year for Members representing an electorate of 500 square kilometres but less than 5,000 square kilometres
- $48,357 per year for Members representing an electorate larger than 5,000 square kilometres or more
The report said the current framework was complex.
The tribunal engaged private firm Mercer to assess the work value of a backbench MP.
It recommended that an appropriate MP basic salary would fall in the range between $171,400 and $202,800 per year.
https://www.abc.net.au/news/2019-09-17/victorian-premier-to-become-highest-paid-state-leader-pay-rise/11520214
