Big pay boost for MPs, but gold pass goes

Senior public servants have also won significant pay rises over three years.

The annual salary package of the Department of the Prime Minister and Cabinet’s head, Ian Watt, will rise by more than 50 per cent to $825,000 in July 2014, while Treasury secretary Martin Parkinson will be paid $805,000.

The other 17 department heads’ salary packages, now worth $504,810, will increase to between $650,000 and $780,000 a year.

Five other Commonwealth office holders – the chief of the defence force, the tax commissioner, Customs’ chief executive, the auditor-general and the Australian statistician Brian Pink – have also won increases worth an extra $170,180 to $240,000 a year.

The big pay rises come as the Government struggles to return the budget to surplus and is requiring Australian families to tighten their belts in these hard economic times.

The pay increases for politicians and senior public servants dwarf the 3per cent indexation given to the average income earners, yet are themselves dwarfed by the multi-million dollar salaries of private-sector bosses.

Special Minister of State Gary Gray stressed that the recommended pay changes were the decision of the independent tribunal.

”It’s never a good time for politicians to be contemplating a pay rise,” he said.

”The importance of this pay rise is it’s taken out of the hands of politicians.”

Mr Gray said the changes would enhance the transparency of politicians’ pay, as they remove ”salary-like benefits” that are not subject to tax.

But the Community and Public Sector Union condemned the pay rises, saying it was an affront to frontline public servants facing deep budget cuts and redundancies.

National secretary Nadine Flood said the size and timing of the pay rises was a ”bitter pill to swallow” for thousands of public sector staff who earn between $40,000 and $60,000. ”Politicians and departmental secretaries will get pay rises of between 29per cent and 53per cent,” Ms Flood said.

”At the same time, frontline public sector workers have to fight just to get increases higher than 9per cent. It’s a bit rich.

”There’s no doubt that politicians have demanding jobs and should be paid appropriately. However, coming on the heels of tough budget cuts and a pay cap for frontline staff, this pay hike has really angered many public sector workers.”

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