With Australian politicians pay set to rise, Prime Minister Julia Gillard’s salary will touch a whopping $476,000, more than what U.S. President Barack Obama and British Prime Minister David Cameron earn.

The pay rises were based on recommendations following an independent review, which recommended a backbencher be paid between 185,000 and 250,000 Australian dollars, according to media reports.

The tribunal chose the lowest option. Parliament needs to approve the changes before the new pay scale comes into effect.

After the pay hike, Ms. Gillard’s salary will touch 481,000 Australian dollars ($476,000) from 367,000 Australian dollars.

She will earn more than the U.S. President, who is paid about 400,000 Australian dollars, and Mr. Cameron, whose salary is about 221,000 Australian dollars, despite presiding over a world power with a population three times that of Australia.

Tribunal president John Conde said that Ms. Gillard’s new salary was “not unreasonable”.

He said it was important that Australia paid its politicians well enough to attract and retain people from all walks of life in the Parliament.

Opposition shadow ministers will also benefit from substantial pay rises of between 20 per cent and 27.5 per cent.

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