Recent legislative changes have given the Remuneration Tribunal the power to determine MPs’ base salary and removed the Parliament’s power to disallow these determinations. Further information on parliamentary salaries and entitlements is available in the Parliamentary Library publications, The basic salary of senators and members Parliamentary remuneration and entitlements and Superannuation benefits for senators and members elected before 2004.
Showing posts with label Parliamentary remuneration. Show all posts
Showing posts with label Parliamentary remuneration. Show all posts
August 20, 2012
March 14, 2012
MP's salary and entitlements
The Remuneration Tribunal has today set MPs base salary at $185 000 effective from 15 March 2012. This amount was foreshadowed in the Tribunal’s statement and initial report released on the 15 December 2011. The setting of the base salary had been dependent on the Government introducing legislation to delink increases in base salary and additional salary with the benefits received by former members under the Parliamentary Superannuation Contributory Scheme 1948 (PCSS).
Following the passage of the Remuneration and the other Legislation Amendment Bill 2011 and the Members of Parliament (Life Gold Pass) and other Legislation Amendment Bill 2012 this severing is complete. The Remuneration Tribunal has the authority to determine what portion of the base salary and additional salary will not be counted for superannuation purposes: that amount had been determined as $38 620 for base salary and 20% of the additional salary (as there are different levels of additional salary).
The Tribunal has also introduced additional salary for shadow ministers, set as a percentage of the base salary, which could be either 20.0% or 25.0%. The Tribunal has allowed the payment of additional salary for the make-up of the current shadow ministry but has foreshadowed that it expects the size of the shadow ministry to be equal to that of the ministry in the future.
Following the passage of the Remuneration and the other Legislation Amendment Bill 2011 and the Members of Parliament (Life Gold Pass) and other Legislation Amendment Bill 2012 this severing is complete. The Remuneration Tribunal has the authority to determine what portion of the base salary and additional salary will not be counted for superannuation purposes: that amount had been determined as $38 620 for base salary and 20% of the additional salary (as there are different levels of additional salary).
The Tribunal has also introduced additional salary for shadow ministers, set as a percentage of the base salary, which could be either 20.0% or 25.0%. The Tribunal has allowed the payment of additional salary for the make-up of the current shadow ministry but has foreshadowed that it expects the size of the shadow ministry to be equal to that of the ministry in the future.
October 6, 2011
MPs’ wages fall relative to average wages
The Remuneration Tribunal’s current review of parliamentary remuneration is generating much public discussion and media comment. This FlagPost examines the growth in MPs’ basic salary (the annual allowance) against growth in average wages (as measured by male total average weekly earnings) over the last 40 years.
Since the 1970s the annual allowance for members of parliament has declined relative to the average wage. For instance in 1975 the annual allowance paid to an MP was nearly three times that of the average wage. In 2011 it was just over twice the average wage.
Much of the deterioration in the relative size of the allowance to average wages occurred during the 1970s and 1980s. This trend is illustrated by the following graph, in which the annual allowance and average wage have been converted into an index in real, that is, inflation adjusted terms.
Since the 1970s the annual allowance for members of parliament has declined relative to the average wage. For instance in 1975 the annual allowance paid to an MP was nearly three times that of the average wage. In 2011 it was just over twice the average wage.
Much of the deterioration in the relative size of the allowance to average wages occurred during the 1970s and 1980s. This trend is illustrated by the following graph, in which the annual allowance and average wage have been converted into an index in real, that is, inflation adjusted terms.
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