Queensland Premier Campbell Newman has promised to review a 42 per cent MP wage hike after anger from unions, the Opposition and the public.

The Queensland Government has been criticised over the salary rise for state MPs, which comes after broad cuts to public sector job cuts.

The increases would see MPs get an extra $57,000 a year, ministers an extra $90,000, while Mr Newman's pay would rise by $117,000.

Mr Newman, who has faced massive public backlash over the issue, has also apologised for the way the pay rise for state politicians was handled.

The Premier returned from holidays today to announce what he says is a five-point plan to deal with the issue.

Key points: Campbell Newman promises to review massive wage hike for MPs after widespread backlash

Campbell Newman promises to review massive wage hike for MPs after widespread backlash Queensland Government will create new independent tribunal to set pay rates and review politicians' allowances

Queensland Government will create new independent tribunal to set pay rates and review politicians' allowances Tribunal will be lead by Tim Brailsford, David Harrison and Joanne Jessop

Tribunal will be lead by Tim Brailsford, David Harrison and Joanne Jessop Newman apologises for the way the issue was handled

Mr Newman's plan includes legislating an independent remuneration tribunal that will be responsible for determining politicians' salaries and allowances.

"I'm drawing a line in the sand today. I'm addressing the significant concerns and the anger of the Queensland public," he said.

"I'm sorry this has happened in this way. I again stress that the Deputy Premier and the Cabinet were following the law and the legal advice they were given, but today we make it right."

Pay rise table Old Salary New Salary Premier $280,648 $398,271 Deputy Premier $241,436 $342,625 Minister $222,026 $315,080 Lord Mayor of Brisbane $222,026 $315,080 Opposition leader $200,478 $284,501 Backbencher $137,149 $194,630 Brisbane City Council bus driver $45,401 $46,309 *Bus driver salary based on Brisbane City Council's weekly base pay rate.

He said the tribunal will carry out a full review of MPs' salaries, with the goal of "breaking the nexus" between the salaries of state and federal politicians.

But he would not say whether he thought state politicians should be paid as much as federal politicians.

"I'm making no call on that. Indeed, I'm just not going to get into the issue of what we should be paid," he said.

Newman sets up tribunal

Mr Newman said the remuneration tribunal would be led by three prominent Queenslanders: the vice chancellor of Bond University, Tim Brailsford; former AMWU secretary David Harrison; and Multicap chief executive Joanne Jessop.

Mr Newman admitted that in the past, MPs had treated allowances as "de facto pay", and said the tribunal would ensure MPs do not have a say over their salary or allowances.

"It is patently clear the Queensland Parliament's entitlements system needs urgent review," Mr Newman said.

"The LNP Government has never shied away from reform and we will make sure the entitlements system is fixed in an open and transparent way.

"I note that both the Opposition and the KAP have publicly supported the creation of an independent tribunal to determine the future entitlements of Queensland's Parliamentarians.

"With their public endorsement of our plan, I look forward to our new measures receiving bipartisan support."

If the tribunal recommends lower pay, money will be clawed back.

Mr Newman also plans to legislate that back pay will only be available for politicians from July 1 of this year.

Union says Government losing support

The Premier is entering damage control mode on this issue as Queensland's unemployment rate rises to 6.4 per cent, second only to Tasmania.

The furore is also exacerbated by the Queensland Government's 14,000 public sector job cuts since it came to power last year, and the level of pay for many of those remaining is the subject of an ongoing dispute.

Unionists organised a ReachTEL poll last night and say the Coalition has lost as much support in the last week as they did in the first 12 months of government.

Alex Scott, the secretary of the public sector union Together, says 1,600 Queenslanders were polled.

"Overall, it shows a dramatic drop in the two-party preferred vote for the State Government since the Newspoll earlier in the week," he said.

"So it's a 4 per cent drop; 75 per cent of people believe the politicians' pay rises should be limited to whatever the public service gets."