Following a 3.5 percent pay rise for all politicians in the Australian state, Victorian Premier Jacinta Allan’s annual remuneration is set to increase to almost half a million dollars.
On July 1, the Victorian Independent Remuneration Tribunal announced a decision to award a 3.5 percent increase to MPs’ salaries and expense allowances for the new financial year (pdf).
This decision mirrors the ruling made by the Tribunal in 2023.
Under the new pay rise, Ms. Allan’s salary will rise to $498,031 (US$332,000) in the 2024-25 financial year, up from $481,190 in the previous year, making her the highest-paid state premier.
Her salary package includes an MP’s basic salary of $205,798, an additional salary for the premier position of $229,636, and an expense allowance of $62,597.
Deputy Premier Ben Carroll and Opposition Leader John Pesutto will also see their salaries increase to $423,944 and $397,192, respectively.
The Tribunal considered various factors in making its decision, including Victoria’s wage policy, the state’s fiscal circumstances, and strategies for dealing with net debt.
Despite economic challenges, indicators suggest an improved outlook for economic growth and real wages.
Victoria faces a significant debt problem due to COVID-19 lockdown policies and spending on infrastructure projects and public services.
According to the state’s budget paper, net debt is projected to reach $187.8 billion by June 2028.
Stakeholders proposed various salary adjustments for MPs, but the Tribunal also considered national minimum wage increases and remuneration adjustments in other states.
The pay rise for Victorian MPs follows a similar increase for federal public officers announced two weeks prior.
Prime Minister Anthony Albanese now earns an annual salary of $607,500, surpassing that of U.S. President Joe Biden.
