Eight months out from the next state election, the NSW Government will legislate to override the Parliamentary Remuneration Tribunal's (PRT) recent determination that would have awarded MPs an extraordinary 22.4 per cent payrise.

The independent statutory PRT determines parliamentary remuneration, allowances and entitlements, and in its determination late last month, MPs would have received a 3.7 per cent increase to their basic salary from July 1, 2026, (backdated), followed by an 18.77 per cent increase from May 1, 2027, alongside additional staffing and changes to parliamentary allowances.

However, in an extraordinary move, the NSW Government will introduce legislation that will provide for a three per cent increase to MPs' basic salary from July 1, 2026, while maintaining existing staffing arrangements, allowances and parliamentary entitlements.

The proposed legislation will be considered through the usual Government and Party processes ahead of its introduction to Parliament.

“The government does not believe it is appropriate for Members of Parliament to receive two pay rises in the space of eight months, together with additional staffing and significant changes to allowances, at a time when many people across NSW continue to face cost-of-living pressures,” a joint statement by Premier Chris Minns and Special Minister of State John Graham on July 31 revealed.

“While the government respects the Tribunal's independence, it believes the overall package goes beyond what is appropriate in the current economic environment and is therefore asking Parliament to amend it.”

In its submission to the Tribunal, the NSW Government argued that a three per cent increase appropriately reflected the state's financial position, the current economic environment and the government's wages policy.

More than 150,000 public sector employees will receive a three per cent pay rise in 2026-27.

The Government also made clear that a larger increase for MPs would place additional pressure on the State Budget.

The Bill is consistent with previous steps taken by the NSW Government to ensure executive remuneration remains responsible, including legislation to freeze the pay of state MPs and senior public service executives between July 1, 2023 and July 1, 2025.