The Turnbull government has been accused of creating "jobs for mates" by employing a Liberal MP who lost his seat at the July election in a newly created position in the Senate President's office.

Senate President Stephen Parry confirmed at estimates hearings on Monday that he has employed former colleague Eric Hutchinson to represent him in his home state of Tasmania.

The job was not advertised before being filled and no equivalent position exists for the Senate President's counterpart, the Speaker of the House of Representatives.

Senator Parry said Prime Minister Malcolm Turnbull's office had approved the allocation of an extra staff position after the July election.