Junee Council Shire has agreed to promote a minimum wage rise of 2.5 per cent for serving councillors in the new financial year.
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But long-term councillor Bob Callow admitted following Tuesday's meeting that the increase was just to meet the legal requirements outlined by the Local Government Remuneration Tribunal.
"I've been a councillor for 14 years and we've never taken more than the lowest increase," Cr Callow said.
"Some of us even give the additional amount to charity or to the community in some way.
"I don't know what other councils [in the region] do, but that's how it's always been for us."
Guidelines outlined for rural councils stipulate that a councillor may not receive remuneration of more than $12,160 but must receive a minimum of $9,190.
The new minimum brings the councillor's fee up from last year's minimum at $8,970.
Additionally, the mayoral allowance has been brought to $16,800, well below the maximum set by the Tribunal at $20,245.
Since the election of Neil Smith as mayor in 2014, the council has typically shared the mayoral allowance with the deputy mayor.
In the incoming year, the deputy mayor will receive $3,950 of the mayor's $16,800 remuneration package.
"The money is nice, but we don't do what we do for the money," Cr Callow said.
"There have been councillors in the past who have said 'put it up to the maximum so that at the next election we can entice more people to run', but I say if you're in it for the money you're in it for the wrong reason."
The Local Government Remuneration Tribunal sets an annual fee increase with which to remunerate councillors and the mayor for their services to the town.
Junee Shire Council consistently adopts the minimum increase.
It follows last year's unanimous decision after a discussion to bring the fees up a minimum amount.
Meanwhile, at a state level, the NSW Berejiklian government has this week announced an increase to politician salaries that will come to a maximum of $110,000 per salary.