Federal politicians have won themselves a four per cent pay rise – the biggest in a decade awarded by the independent remuneration tribunal.

The decision, announced on Tuesday, will see the basic salary of a backbench MP increase from $217,060 to about $225,742 – more than twice the average full-time salary.

Anthony Albanese’s pay as Prime Minister will increase to $586,929, while Opposition Leader Peter Dutton will now receive $417,623.

The remuneration tribunal described pay increases for federal politicians over the past decade as “conservative”.

MPs received no salary increase in 2020 and 2021 and a 2.75 per cent rise in 2022.

“The Tribunal is obliged to consider the outcome of the Annual Wage Reviews of the Fair Work Commission (FWC) in its annual review deliberations,” it said in a statement.

“The Tribunal also considered the Federal Government’s Budget outlook and published data on movements in both private and public sector remuneration,” it added.

“Remuneration data in general reflects a continued period of increasing wage growth across the economy, with the annual rate of growth rising for each of the last nine quarters from a low point of 1.4 per cent in the December quarter 2020 and March quarter 2021.”

The increase is larger than the wage price index, which has grown by 3.6 per cent over the past year.

The decision also applies to public office holders like judges and some executive appointments.

The pay rise does not include the various allowances, many of which were increased by a modest amount late last week.

Mr Albanese’s pay rise puts him just under the salary of US President Joe Biden on $588,750, and easily eclipses Canadian Prime Minister Justin Trudeau’s $422,585.

Rishi Sunak, the British Prime Minister brings home a comparatively lowly $309,000. However, his salary is supplemented by perks like access to 10 Downing Street, chauffeured transport and a country house.

They all pale in comparison with the earnings of Singaporean Prime Minister Lee Hsien Loong, who brings in more than 2.4 million a year as the highest-earning democratically elected government leader in the world.