Chief Minister Natasha Fyles has introduced urgent legislation to prevent Northern Territory politicians from getting a $3,000-a-year pay rise.
While the Country Liberal Party opposition has backed keeping pay freezes, independent politician, Robyn Lambley, has criticised the move as "unfair".
The Remuneration Tribunal on Wednesday decided to increase the pay packets of members of the legislative assembly, despite the government making submissions for them to remain frozen.
The government enacted a pay freeze for politicians three years ago in line with its broader freeze of wages across the Northern Territory's public service, saying it was key to repairing the budget.
But earlier this year, the NT government gave its workers a two per cent pay rise amid pressure from unions and the opposition, as the cost of living and interest rates surged.
In its report tabled in parliament, the tribunal said keeping pay frozen for another year would "place them in the lowest rank of politicians in Australia".
If the increase goes ahead, the base salary of NT politicians would be $165,696 a year, ahead of only Tasmania and Western Australia and well behind the $192,115 earnt by politicians in the highest paying state of Victoria.
The government's legislation will only affect the pay of politicians, with an increase to the salaries of electorate workers of $3,000 per year from January 1 2023 to be unaffected.
The tribunal warned that a continued freeze of electorate office workers' pay "could result in their salary level becoming uncompetitive".
It increased the number of combined trips for the opposition leader and deputy opposition leader from 30 to 40 each year.
Bipartisan support to keep pay freeze
Ms Fyles moved to introduce a bill which would undo the increase at the start of the Wednesday's sittings, saying "did not believe a pay rise was necessary".
"The RTD [Remuneration Tribunal Determination] are independent and they have made a different determination," she said.
"It is with no disrespect to them, but it is simply [that] we do not agree."
Ms Fyles said the legislation needed to pass before the end of the current sittings next week, or the pay rise would come into effect at the start of next year.
"We've been balancing the Northern Territory government budget, we've done a really great job [but] we've got a ways to go," she said.
Opposition leader Lia Finocchiaro said her party would support the legislation.
But the move has drawn the ire of outspoken independent MLA Robyn Lambley, who represents the Central Australian electorate of Araluen.
"It's all very well for the chief minister to stand in the parliament and demand that everyone's pay be frozen for another period of time, because the Chief Minister is the highest paid person in this chamber," she said.
Ms Lambley said she did not need the pay rise but was worried about the financial welfare of other members of the parliament.
"They have commitments, they are paying off houses, they have bills to pay, they're supporting families like every other Territorian, and to put them through another extended period of freezing their pay is unfair.
"Most people in this chamber don't earn the money that the Chief Minister and her ministers earn."
When the government backflipped on its controversial pay freeze of public sector workers in October, it promised politicians would not receive a pay rise.
