As the United States prepares for the next presidential election, either Donald Trump or Kamala Harris will soon step into one of the world’s most influential roles. This powerful position, however, remains a federal job, compensated accordingly. While the average American earns around $44,500 annually, the US president receives a notable $400,000 per year, alongside other perks and allowances that make the role one of the most attractive in terms of benefits, if not necessarily in salary.
Presidential Pay and Allowances
The $400,000 presidential salary has been in place since 2001, when Congress last approved an increase. In addition to this base salary, the president receives a $50,000 expense allowance, $100,000 in non-taxable travel funds, and $19,000 for entertainment expenses, totaling an annual compensation package of $569,000. Notably, any unused portion of the $50,000 expense fund must be returned to the US Treasury. Presidents also receive $100,000 to redecorate the White House, although some, like Barack Obama, have chosen to use personal funds for these expenses. While the First Lady has significant public duties, she receives no salary.
After their term, former presidents are eligible for a pension of about $200,000 per year, along with healthcare coverage and paid official travel. Transportation perks for sitting presidents include access to the presidential limousine, Marine One helicopter, and Air Force One jet, as well as residency in the White House.
Comparing US Presidential Pay Worldwide
Though it might seem substantial, the US president’s salary doesn’t place them among the world’s best-paid leaders. Singapore’s Prime Minister Lawrence Wong leads the pack, earning around $1.69 million per year, followed by Hong Kong’s Chief Executive John Lee Ka-chiu, who makes $672,000 annually. Switzerland’s President Viola Amherd, Australia’s Prime Minister Anthony Albanese, and others also rank higher than the US president in terms of pay. In stark contrast, the lowest-paid world leaders, like Ethiopia’s prime minister, earn just $1,700 per year.
Historical Context and the Impact of Inflation
Since George Washington’s time, presidential pay has seen various adjustments. Washington’s initial $25,000 salary in 1789 would equal around $896,000 today when adjusted for inflation. However, as inflation erodes purchasing power, today’s $400,000 salary would have been worth $1.7 million in 1969. Analysts note that, while the presidential salary hasn’t increased since 2001, this decline in real value doesn’t deter candidates like Trump or Harris, who each have significant wealth: Harris is valued at approximately $8 million, while Trump’s net worth is an estimated $3.9 billion, according to Forbes.
With Election Day approaching, the next US president will face substantial responsibilities for a salary that, while symbolically significant, has lost much of its former buying power.
