Federal MPs have been granted a two per cent pay rise.

The Remuneration Tribunal says it took economic restraint, lower wage growth and the government's public sector workplace bargaining policy into account when it made its decision.

“The tribunal notes that various indicators predict that wage growth is expected to increase gradually, lagging economic growth,” it said this week.

“Wage growth has increased modestly over the past year, with reliable measures indicating private sector wage growth is now equalling or outpacing the public sector.”

Prime Minister Scott Morrison will see a bump of just over $10,000 a year on top of his current $538,460.

The base annual salary of MPs and senators is now $207,100.

Politicians rarely get good press when their pay is lifted, but this raise sits in particularly stark contrast alongside the penalty rates cuts that also come into effect on July 1.

United Voice secretary Jo-anne Schofield says hospitality workers will lose as much as $2,000 a year when their cuts come into force.

“Working people need jobs that are secure and pay them fairly - not more cuts that stop them from being able to pay for life's essentials,” she said in a statement.