UPDATE 1.07pm: GREENS Leader Bob Brown has blasted a pay rise for federal politicians and says it's disgraceful the money will flow to pockets with no debate in parliament.

Prime Minister Julia Gillard's pay will soar by $90,000 to about $470,000 - more than either US President Barack Obama or British PM David Cameron are paid.

New Speaker Peter Slipper will pocket an extra $70,000, taking the Liberal turncoat's salary to at least $315,000 as part of a pay rise for federal MPs to be revealed before Christmas.

Pay of the most junior parliamentarians will jump from $140,000 to at least $180,000.

Do our pollies deserve massive pay rises? Have your say below

Senator Brown said the major parties had "removed the embarrassment'' of accepting the pay offer and "shed responsibility for a pay grab''.

It was double standard to debate the Budget, but not pay rises, which had budgetary implications, he said.

"It is our responsibility to justify to the electorate, to the taxpayers, the remuneration for MPs,'' he said.

Mr Brown said politicians' salaries should be compared with those of ordinary Australians, like police and nurses, not corporate executives who earned millions.

"There will be people who will argue that parliamentarians deserve to be paid more, particularly those who work hardest,'' he said.

"There will be those who think, like I do, that parliamentarians are very well paid in Australia if you compare us with other countries.''

He said he had "never felt that the tribunal was independent of political knowledge'', but accepted it had been set up to make decisions at arms length.

The Government is bracing for a public backlash to the pay deal, particularly after its spending cuts announced just two days ago included slashing the baby bonus and reducing public service spending.

Victorian Council of Social Services chief Cath Smith said MPs should show improvements in the same way they expect improvements from nurses, police or teachers.

"I think we need to see some productivity and efficiency gains by our pollies as well, their accountability for pay rises,” Ms Smith said.

"If you’re going to have pay rise at the moment if you’re government funded or you’re a public sector workforce you’ve got to demonstrate accountability and productivity improvements so I think I would like to see some productivity improvements for how parliamentarians work as well.”

She suggested one example would be to improve behaviour during question time.

"I think the point of Parliament is to debate questions of policy so I would certainly put some measures around efficiency in debating policy rather than personal attacks.”

Part of the new pay deal will see future MPs lose their lifetime travel Gold Pass, cutbacks on the perk for existing MPs, and the phasing out of overseas study allowances.

The Remuneration Tribunal has granted the biggest boost to federal MPs' salaries in decades, reversing Kevin Rudd's decision to freeze their pay during the global financial crisis.

Senator Stephen Conroy said the timing of the MP pay announcement was unfortunate.

“It’s an unfortunate accident of timing in terms of the remuneration tribunal, they’ve been working, I understand, on this for a good six or seven months and for it to be right at this time it just doesn’t look good,” Mr Conroy told Channel Nine this morning.

He said MPs no longer controlled their pay rises and couldn’t freeze them as Kevin Rudd did during the GFC.

“There’s an independent remuneration tribunal, they’re looking at the work politicians do, they’re looking at the value of the work politicians do…and they’ve formed this judgment and are putting it forward at the moment.”

Senator Bill Heffernan said politicians weren't in it for the money.

"If you think we go in this for the dough, think again. I lose money by being a politician, I'm a bloody farmer,'' he told ABC radio.

"If you think the CEO of Westpac Bank is worth thirty times more than what the Prime Minister gets, then best of luck.''

Opposition Leader Tony Abbott's pay packet will swell $74,000 to $333,000.

Treasurer Wayne Swan, the deputy Prime Minister, will earn about $370,000, an $83,000 rise.

And while Finance Minister Penny Wong has been busy slashing spending, she will earn a handsome increase of about $70,000, boosting her pay to about $310,000.

Shadow ministers such as Joe Hockey, Malcolm Turnbull and Chris Pyne will receive a special "loading" for the first time.

The Coalition is expected to fully support the rises. Senior figures argue that present pay scales for federal MPs are too low.

Surprisingly, it is expected that MPs will keep their electorate allowances, which is worth up to $46,000 for some parliamentarians.

It was expected this would be "rolled into" the base salaries for MPs but the tribunal has decided to keep it as a discrete entitlement.

The boost in pay will see PM Gillard, who is paid a loading of 160 per cent, earning $70,000 more than Mr Obama and $249,000 more than Mr Cameron.

But the reforms, being driven by Special Minister of State Gary Gray, will also usher in greater transparency with the axing of the Gold Pass. This allows former MPs to take up to 25 return trips a year - for life - courtesy of the taxpayer.

It is expected that all current MPs will still be able to qualify for the Gold Pass, although the rewards may be pared back.

The Opposition's 30 shadow ministers will receive additional pay for the first time. Senior shadow ministers will earn more than their junior colleagues.

Victorian MP Bruce Billson said he supported a review of the controversial Gold Pass, which allows ex-MPs 25 taxpayer-funded flights per year.

"The Gold Pass was introduced years ago and it needs to be looked at. It’s my belief that it should be replaced by limited travel that has a genuine parliamentary link and has public benefit," he said.

Mr Billson said he had not seen the Renumeration Tribunal's report.

"Australians expect their politicians to work hard for their electorates and every MP will continue to have to live up to expectations of their communities and face appraisal at the ballot box," he said.

"Just like all previous changes and freezes, I accept whatever the independent tribunal decides and will do the best job I am able to do for the community and small business people I represent."

State Government MPs won't be privy to similar unprecedented pay rises.

Premier Ted Baillieu capped state MPs' salaries to the Victorian Government's wages policy of 2.5 per cent earlier this year, after rejecting a 3 per cent rise recommended by the independent Commonwealth Remuneration Tribunal.

Mr Baillieu said at the time that the Victorian community would expect that MPs' wages reflected the base increase of other state employees such as teachers, nurses and police officers.

- Steve Lewis, Jessica Marszalek, Michelle Ainsworth, Jessica Craven

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Julia Gillard and MPs are happy as pigs in mud.

Originally published as Bob Brown slams pollie pay rise