Federal MPs awarded 4 per cent pay rise

It marks the biggest pay increase for federal MPs since 2014, with backbenchers to net more than $225,700, up from $217, 060.

The Prime Minister, meanwhile, will see his salary grow by around $22,000, from $564,350 to nearly $587,000.

The deputy prime minister and MPs who hold additional roles, including in the cabinet, get a percentage on top of the base salary received by backbenchers and are set to net from around $10,000 to $17,800 extra.

When questioned about the increase, Anthony Albanese said the tribunal made these decisions at "arm's length from politicians".

"I have no role in in any of these processes, and that's as it should be. You do not want politicians determining their own conditions," he said.

The independent body said it reached its decision after taking into account a decade of "conservative" increases. In 2022, the tribunal awarded public offices a "modest" 2.75 per cent pay rise after two years of no increases.

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"Including the current decision to apply a 4 per cent increase to all offices in its jurisdiction, the cumulative total of remuneration increases awarded by the Tribunal since 2014 amounts to 14.75 per cent," the tribunal said in its statement.

"In contrast, remuneration increases more generally in the public and private sectors (based on overall June WPI data from 2014 - 2023) have equated to 23 per cent."

It comes after the Tribunal raised travel allowances for MPs and senators earlier this month.

MPs will get a pay rise from September 1 while other public office holders have their increase backdated to July 1.