The Speaker and Deputy Speaker of the Victorian Parliament have resigned following revelations they claimed parliamentary living allowances for second residences.

Key points: Mr Languiller, the Labor MP for Tarneit, promised to repay $37,678

Mr Languiller, the Labor MP for Tarneit, promised to repay $37,678 He acknowledged the 'error of judgement' that could damage the office of the Speaker

He acknowledged the 'error of judgement' that could damage the office of the Speaker Deputy Speaker Don Nardella also claimed the controversial allowance

Speaker Telmo Languiller and Deputy Speaker Don Nardella, both Labor MPs, have been under intense pressure since their allowance claims were revealed.

Mr Languiller had promised to repay $37,678 he claimed under the allowance for living in Queenscliff, more than 80 kilometres from Melbourne, rather than in his electorate of Tarneit, in Melbourne's west.

He told Parliament he moved to Queenscliff for complex personal reasons.

Under parliamentary rules, politicians are entitled to the "second residence" allowance if their home base is at least 80km from Melbourne's CBD and they keep a second property in the city.

In a statement, Mr Languiller said he recognised that offering to repay the money was not enough and that he accepted he should "pay for that error of judgement".

"For this reason I contacted the Premier to inform him that I would be resigning as Speaker of the Parliament," he said.

"I regret that this issue, if not addressed, could damage the position of Speaker of the Parliament."

Mr Languiller thanked all of his colleagues for the support he had been given.

"The Premier has provided me with much support over the last two years as I faced very difficult family challenges," he said.

"I reiterate my regret at the actions I have taken and hope that as a backbencher in the Andrews Labor Government I can rebuild trust by serving my electorate of Tarneit and my community."

Deputy Speaker Don Nardella announced his resignation only a few hours after Mr Languiller.

Premier Daniel Andrews, who had defended Mr Languiller on Friday, said the joint resignations were "the right decision".

"It is self-evident that the second resident allowance is meant for regional MPs who must travel to Melbourne for Parliament," he said in a statement.

Mr Andrews said he had asked the Special Minister of State to "urgently determine what changes are required so what has occurred in these instances does not happen again".

He thanked both men for their service and said he had no doubt they would continue to stand up for their communities.

He said the Labor Party would nominate candidates for both positions at the next regular Caucus meeting.

Government has a problem with 'rorting'

Mr Languiller's resignation came after Opposition leader Matthew Guy called for his sacking.

It also emerged the Deputy Speaker, Don Nardella, had also claimed the allowance.

Mr Nardella, who represents the seat of Melton, in Melbourne's north-west, has been living over 90 kilometres away at Ocean Grove on the Bellarine Peninsula and claiming the allowance.

Mr Nardella claimed the allowance for his home at Ocean Grove. ( Supplied: Parliament of Victoria )

Mr Guy said the Andrews Government "has a huge problem with rorting".

"The taxpayer, Victorians will be very angry, furious to know the Premier has two standards, one for everyone else and one for his own MPs," Mr Guy said.

"He's got to sack these people, he's got to sack the Speaker and sack the Deputy Speaker.

"They've been caught out rorting and they now deserve to go."

Confirming Mr Nardella had also claimed the allowance, a government spokesperson said the matter had been referred to the Audit Committee of Parliament and that the Premier urged the committee to provide recommendations on the use of the entitlement "as soon as possible."

A Government spokesperson said there would be no further comment on Mr Languiller's resignation.