The £2,089 hike, effective from April 1, is well above the current inflation rate of 1.8 percent on the main CPI measure. It follows a 1.8% boost to MPs' pay last year, 1.4 percent in 2017, 1.3 percent in 2016 and a big increase from £67,000 to £74,000 in July 2015. MPs' pay is linked to average rises in the public sector, as determined by the Office for National Statistics.
The 2.7 percent figure was announced by the ONS on an interim basis in December and confirmed last week to the Independent Parliamentary Standards Authority (IPSA), which made the final announcement.
Following reforms to the way MPs' pay is calculated, the rise is automatic and not subject to a vote in the House of Commons.
Chairs of Commons committees will enjoy a 2.7 percent increase to the additional salary they receive on top of their basic pay, taking it from £15,509 to £15,928.
Ministers' salaries are determined separately.
MPs are to receive a 2.7 percent pay rise (Image: GETTY)
It is an outrage that MPs are rewarding themselves with an above-inflation pay rise while civil servants, who do some of the most vital jobs in society, are still subject to a cruel one percent de-facto pay cap
Mark Serwotka, general secretary of the Public and Commercial Services (PCS) Union, launched a scathing attack on the pay rises, labelling then as an "outrage".
He warned this will only further infuriate 120,000 members PCS is balloting for strike action over pay this summer.
He said: "It is an outrage that MPs are rewarding themselves with an above-inflation pay rise while civil servants, who do some of the most vital jobs in society, are still subject to a cruel one percent de-facto pay cap.
"PCS are balloting 120,000 members for strike action over pay this summer and today's news will only anger them further."
Mark Serwotka labelled the pay rises an 'outrage' (Image: GETTY)
TaxPayers' Alliance grassroots campaign manager Harry Fone accused Ipsa of being "out of touch with the public".
He said: "A lot of taxpayers are going to be annoyed by this announcement.
"In the private sector, pay rises and bonuses are rewarded based on performance, not for just turning up.
"IPSA are once again out of touch with the public."
The hike in pay is well above the current inflation rate of 1.8 percent (Image: GETTY)
Last May, it was reported Jeremy Corbyn’s last published tax return put his income at £136,762, while Theresa May’s was £117,350, but she hadn’t published one since becoming Prime Minister.