The cash will be shared out between members – despite a recommendation that constituency MSPs should be better funded than those elected from the regional lists.

The change also saw the end of the controversial allowance which enabled MSPs to invest in the Edinburgh property market. Instead, it will only be allowed for rent and hotel bills.

In a bitter debate, MSPs were sharply divided over how the extra money should be carved up.

The vote was based on the independent review carried out by Dundee University principal Sir Alan Langlands into allowances. He recommended that constituency MSPs' allowances should increase from £48,000 to £62,000, whilst regional list members should drop to £45,000.

This was backed by the Labour, which is mostly made of constituency MSPs, who argued the report was based on evidence and should not be altered.

However, the SNP, Conservatives and Greens, who consist primarily of list members, forced through a compromise giving all MSPs £56,000 each.

After the vote, Michael MacMahon, who argued the case for Labour, said: "We knew we were going to lose because the Tories, SNP and Greens stitched up the vote beforehand. But it is a shame they have decided to cut the wages of constituency MSPs staff for party-political gain."

However, Trisha Marwick, a Nationalist MSP whose amendment won the day, said: "I am happy to see that the important democratic principle that all MSPs and their staff are equal has been accepted by the majority of this parliament The parliament was founded on principles of equality and it is important those are maintained."

Earlier in the debate, Ross Finnie, a Lib Dem MSP, described the idea of a two-tier allowances system as "insulting."

A suggestion by Margo MacDonald, the independent MSP, that all members should claim £62,000 was also defeated.

The review was originally called due to concerns over the Edinburgh accommodation allowance, which allowed MSPs to claim back interest on mortgages for properties they bought in Edinburgh. There was a belief that some MSPs were cashing in on the Edinburgh property market and Sir Alan recommended the money should only be used for rent and hotel bills.

The vote draws a line under a running sore in Holyrood which has seen controversies around purchases made by high-profiles MSPs, including Stewart Stevenson, Fergus Ewing, Nicol Stephen and Mike Rumbles.

FACT BOX

BEFORE

Edinburgh accommodation allowance: Could be used for mortgages, rents and hotel bills as well as general household expenses.

Office and staff: Each MSP could claim £48,000 a year.

Petrol: MSPs could claim 49p per mile.

Travel expenses: Family travel payment between constituency and Edinburgh was allowed.

AFTER

Edinburgh accommodation allowance: After 2011 cannot be used for mortgages and no new mortgages will be allowed.

Office and staff: Each MSP can now claim up to £56,000 a year.

Petrol: MSPs can claim 40p per mile.

Travel expenses: Family travel axed but more available for staff.