Federal MPs to receive huge pay rise

Australian Federal politicians will soon receive a huge pay rise. Prime Minister Julia Gillard is set to take a pay rise of $90,000, pushing her total salary to $470,000. This move will make her a higher-paid leader than Barack Obama. Ms. Gillard will also earn more than British Prime Minister David Cameron.

The salary rise for the federal MPs, which is expected to be announced before Christmas, will give newly elected Speaker Peter Slipper a rise of $70,000 taking his salary to $315,000.

The salary rise for MPs comes as the independent Remuneration Tribunal decided to reverse Kevin Rudd’s decision to ‘freeze’ their pay during the global financial crisis.

After the salary boost, Opposition Leader Tony Abbott’s pay packet will rise by $74,000 to $333,000.

Treasurer Wayne Swan, who is also Deputy Prime Minister, will earn $370,000 compared to his current salary of $287,000.

Finance Minister Penny Wong will receive an increase of $70,000 taking her pay to about $310,000.

The backbenchers will get extra $40,000 for an annual pay of $180,000.

The salary boost for the MPs comes just days after the government announced plans to slash money in public spending as part of a mini-budget.

The government is bracing for a public backlash, particularly after announcing spending cuts, including cutting the baby bonus and reducing public service spending.

However, future MPs will not be eligible for the travel Gold Pass.