Nine out of 12 councillors voted in favour of the proposal at council's meeting on Tuesday night.

It will cost ratepayers an extra $38,669 a financial year with an ongoing commitment for each year after.

Payments will be made under the Commonwealth Superannuation Guarantee and paid as if the councillors were employees of council. At July 1 2020 the guaranteed rate is 10.5 per cent.

Orange City councillors are currently paid $24,810 a year while the mayor receives an additional $61,280.

The vote came on the same night as the council agreed to apply to the Independent Pricing and Regulatory Tribunal to increase its rates peg for 2022/23 to the maximum allowable of 2.5 per cent, a move that if successful, will see residents pay an average of $39.82 extra in rates next financial year and businesses an extra $68.56.

Cr Steven Peterson and Cr Francis Kinghorne spoke against the superannuation proposal, saying it was inappropriate given the financial position council was in.

"We're talking about the possibility of increasing rates by 2.5 percent and this is essentially increasing our fees by 10.5 percent which are already at the top of the allowable scale," Cr Kinghorne said, "I think its fiscally irresponsible and utterly inappropriate."

Cr Peterson agreed, suggesting it was something that could be reconsidered when the budget wasn't in deficit.

However, other councillors argued that being on council was a job like any other, and it should include super.

"This may look like we're giving ourselves a pay rise but at the end of the day, this is a job, we are entitled to superannuation," Cr Melanie McDonell said.

"I think it's a great achievement to finally bring us in line with the other levels of government and pretty much employees everywhere across the country."

"Superannuation is an important part of work, and this is a job like any other."

Her comments were backed by Crs Tammy Greenhalgh and David Mallard: "The time we're putting into council we could potentially be out there earning money in another role where we're getting paid superannuation, but we have chosen to support our community," Cr Greenhalgh said.

Cr Mallard said while councillors had been forced into an "awfully vexed position" by being asked to vote on whether to pay their own superannuation, it was something that had been lobbied long and hard for by local government and voting in favour was the right choice.

Cr Tony Mileto left the meeting and did not take part in the debate or vote on the proposal, saying he regarded it as a conflict of interest.

Councillors may individually opt out of the superannuation payment or choose to receive reduced payments.

Council's should hear back from IPART by June 21 on whether its application to for the special 2.5 percent rate variation is successful.