The basic salary of MPs is due to increase by more than £2,200 ($2,929) after the independent watchdog decided to upgrade it.
The Independent Parliamentary Standards Authority announced that the annual adjustment to MPs’ basic pay for 2022-2023 will be 2.7 per cent, which is the same as the average increase in pay for public sector employees last year.
It will bring the overall salary from £81,932 to £84,144 from April 1, 2022.
Britons face an increased cost of living in April, with insurance contributions rising to fund the National Health Service backlog from the coronavirus pandemic and the energy cap rising by more than 50 per cent.
But Richard Lloyd, the authority's chairman, said MPs should be paid fairly.
The authority said the decision was in line with its previous ruling in 2015 to adjust MPs’ pay at the same rate as changes in public sector earnings published by the Office of National Statistics.
It is the first increase in MPs’ pay for two years, as wages were unchanged in 2021 due to the Covid-19 crisis, the watchdog said.
“MPs play a vital role in our democracy and this is reflected in their pay," Mr Lloyd said.
“It is right that MPs are paid fairly for the responsibility and the unseen work they do helping their constituents, which dramatically increased last year.
“For Parliament to reflect society, it is vital that people from all walks of life can be an MP.”
The Taxpayers’ Alliance said working households were likely to be “furious” about MPs’ pay rises while they “face crippling tax hikes”.
“Elected officials should show restraint and only accept rises when economic conditions allow,” said the lobby group’s chief executive, John O’Connell.
The authority was created in 2009 largely as a response to the MPs’ expenses scandal.
Its responsibilities are to ensure expenses are more transparent and make independent decisions on salary.