Premier to pocket $500,000 as MPs handed pay bump

Victorian Premier Jacinta Allan is the highest paid state or territory leader.

Premier Jacinta Allan has cemented her spot as the nation's second highest-paid politician, with her government defending a 3.5 per cent pay rise for Victorian MPs.

The Victorian leader can pocket up to $498,031 in 2024/25, $16,841 higher than last financial year, under a decision by the Victorian Independent Remuneration Tribunal to increase MP salaries and allowances on Monday.

The premier's package includes an expense allowance of $62,597.

Deputy Premier Ben Carroll can earn up to $423,944, while Victorian Opposition Leader John Pesutto is able to bank up to $397,192.

Back bench MPs with no extra responsibilities will take home $205,798, up from $198,839.

The rise will push the base salary bill for Victoria's 128 parliamentarians $890,752 higher.

The 3.5 per cent pay rise mirrors the tribunal's 2023 decision and aligns with that given to federal MPs, which boosted Prime Minister Anthony Albanese's salary to $607,520 and Opposition Leader Peter Dutton's to $432,280

Ms Allan comfortably remains the highest paid state or territory leader, ahead of Queensland Premier Steven Miles ($462,450) and NSW Premier Chris Minns ($416,440).

"Salary adjustments for members of parliament are a matter for the Victorian Independent Remuneration Tribunal," a Victorian government spokeswoman said.

The tribunal was established in 2019 after the state government introduced legislation preventing politicians from setting their own salaries and allowances.

Its latest determination said stakeholders proposed MPs salaries and allowances be reduced, frozen or increased by three per cent to account for the state's financial position and wages policy of three per cent.

The tribunal factored in the national minimum wage rising by 3.75 per cent and decisions from other Australian jurisdictions on MPs' pay, ranging from no change in NSW to a four per cent increase in Queensland.

In a submission to the tribunal, Victorian Greens Leader Ellen Sandell suggested MPs should not receive pay increases that far outweigh those of nurses, teachers and other public sector workers.

The Victorian government and several agencies remain locked in pay disputes with firefighters, paramedics and regional train workers.

The tribunal has also lifted the values of various work-related parliamentary allowances by between 3.4 and 3.6 per cent, while increasing the electorate office and communications budget by 6.1 per cent to account for rising postage costs.

Labor MP Emma Vulin, who recently revealed she was in the early stages of motor neurone disease, wanted the tribunal to consider expanding expenses to include costs that may be incurred due to a medical condition or illness.

The tribunal agreed in principle that greater flexibility was needed and flagged it would publish updated MP guidelines in mid-2024.

The tribunal also plans to analyse additional salaries to inform its next comprehensive determination in 2027 after Liberal MP Chris Crewther called for shadow parliamentary secretaries to be added to the list.

The Victorian opposition has been contacted for comment.

AUSTRALIA'S HIGHEST EARNING STATE AND TERRITORY LEADERS:

* Jacinta Allan (Victoria) - $498,031

* Steven Miles (Queensland) - $462,450

* Chris Minns (NSW) - $416,440

* Peter Malinauskas (SA) - more than $415,000

* Andrew Barr (ACT) - $396,476

* Roger Cook (WA) - $392,584

* Eva Lawler (NT) - $333,526

* Jeremy Rockliff (Tasmania) - $301,397