University leaders are picking up major pay rises, taking the annual average salary of vice-chancellors in NSW and Victoria to just below $1 million.

Michael Spence, the vice-chancellor of Sydney University, is the highest paid of all, having seen his salary rise 60 per cent in just five years to $1.45 million.

Sydney University vice-chancellor Michael Spence remains the highest-paid among all university bosses in the country. Credit:Brendan Esposito

And Melbourne University's Glyn Davis is not far behind, with a $150,000 pay rise in the last year taking his total remuneration to $1.3 million.

Analysis of financial disclosures of 21 universities in NSW and Victoria by Fairfax Media shows eight paid their vice-chancellors more than $1 million in 2017, compared to six last year.