The Premier, Lara Giddings, said she was relieved the issue of MPs pay had been resolved in the Upper House.

Ms Giddings said the Government was prepared to accept amendments to its proposal to avoid a 38 per cent pay rise flowing through on July 1.

"We have worked together with Upper House MPs on this issue because we are serious about preventing an unfair windfall flowing to politicians," Ms Giddings said.

"I am pleased that MLCs accepted the core of our amendment which is to limit pay increases for politicians to 2 per cent per annum for the next two years, in line with the public sector wages policy.

"It is important that we show leadership on this issue at a time when we are asking all public servants to accept wage restraint."

Ms Giddings said the State Government would put forward a submission asking the Industrial Commission to take into account the state's financial situation and the public sector wages policy when making a determination.

"Our preferred position is still to tie pay rises for politicians to the broader public sector but that is something we will ask the TIC to consider independently through a consultation process.

"In this way it is my hope that we can avoid future salary increases that are out of step with community expectations."

Ms Giddings urged both the Greens and the Liberals to support the legislation when it comes before the Lower House tomorrow.