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Councillors have voted to accept a 14% pay rise.
Despite initial objections from Labour, a motion to increase allowances was passed.
This means each member will now receive a basic rate of £10,421 instead of £9,131.
An independent panel carried out a review and recommended Medway increases its allowances to match other similar sized local authorities.
Members' pay was found to be below the average of £11,234.
This is because the last time Medway was asked to have its say on the matter four years ago, councillors voted down the proposals.
Those with special responsibilities - committee chairman and cabinet members - also receive extra cash on top of their basic allowances.
Planning committee chairman Cllr Diane Chambers (Con) sees an increase from £7,692 to £12,505.
Council leader Cllr Alan Jarrett (Con) will see an increase of £4,445 taking him to £31,263.
Leaders from similar councils earn £30,557 on average.
However, not every member will see a boost - deputy leader Cllr Howard Doe (Con), is facing a £200 cut because he was earning more than the average for his position.
And mayor Cllr Habib Tejan and his deputy Cllr Steve Iles (both Con) will also see their special duties allowances cut by more than £600 to £13,026 and £6,253 respectively.
Speaking at full council, Cllr Teresa Murray (Lab) said being a councillor is a tough and worthwhile job and she hoped fair allowances would increase diversity.
But she also said: "People who work for the council have not received a 14% pay rise.
"It doesn't look good, it sends the wrong message. We should be supporting our people.
"When I see other workers getting a fair pay rise, I will accept it, but not now.
"I cannot in good conscience vote on a pay rise on 14%."
Opposition leader Cllr Vince Maple (Lab) said: "It is awkward for us to vote on our remuneration and it should be taken out of our hands."
The group tabled an amendment suggesting the rise be in line with the cost of living but this was voted down and the increase in allowances approved.
Cllr Maple later confirmed his members would accept the increase despite the earlier reluctance.
Last week KentOnline revealed how council leaders and chief executives across the county are earning more than £2.3m a year.
