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Wednesday, July 4, 2012

Political Pay Rise Normal Process says Wayne Swan, Australia

A day after the central bank warned domestic costs increases must slow to keep prices under control, it's been revealed federal politicians will get a pay rise almost double the rate of inflation.

The independent Remuneration Tribunal has awarded federal MPs a three per cent - $5550 a year - wage increase, just three months after they pocketed a $44,000 annual salary boost.

Treasurer Wayne Swan defended the boost, saying the indexation of politicians' salaries to rises in the consumer price index was normal and occurred across the general workforce.

"There are people out there who will always say that any rise politicians get is not deserved," Mr Swan told Fairfax radio in Brisbane on Wednesday.

But independent senator Nick Xenophon said the increase was "embarrassing". Read More