New Delhi: The job of the US President is one of the toughest in the world. The US president is considered to be the most powerful title not just in the nation but also across the world. So, it is obvious that it must be a well-paid job. And it is, an American president earns much more than the average American worker. While the US president is not the highest paid government post in the world, it sure is a healthy sum.
Salary and perks of the US President
The annual salary of the US president is around $400,000, 10 times the average salary of Americans, which is nearly $44,060. On top of that, the US President enjoys a wide-variety of perks. As part of the salary package, the US president receives a $50,000 (42 lakh rupees) expense allowance, a $100,000 (Rs. 84 lakhs) as non-taxable travel account, and $19,000 (Rs. 16 lakhs) for entertainment each year. The sum total of the salary and the perks is somewhere around $569,000 (Rs. 4.78 crores). The unused funds from the $50,000 expense allowance is usually returned to the US treasury.
According to a Business Insider report, the President receives an additional $100,000 allowance to redecorate the White House. Many Presidents have opted to use the funds to refurbish the house. When Barack Obama took office he opted to use his personal funds to renovate the White House.
The first-lady does not receive any compensation from the government. The last time the President’s salary was incremented was in 2001, when President Bush was in office. The salary of the president cannot be adjusted while the President is still in the office.
Beside monetary perks, the President also receives free transportation in the Presidential limousine, The Beast, Marine One, and Air Force One. Free accommodation at the White House is also a part of the perks. The President receives an additional $200,000 (Rs. 1.78 crores) as pension, and also receives healthcare coverage and official travel allowances.
Presidents are not allowed to decline the President’s salary for a reason cited by Alexander Hamilton under Federalist No 73 “A power over a man’s support is the power over a man’s will.” What that means is if the President is not given a regular salary, they might be tempted to accept bribes and other favors in return of favors, and their decision can be impacted by financial matters.
Have any President declined salary
Presidents are legally required to accept their salaries. However, many Presidents in the past have donated their salaries to non-profit organizations and causes. Herbert Hoover, a mining magnate, donated his salary to numerous organizations.
Robert F. Kennedy, who was born into wealth, and went onto become the wealthiest American president, donated his salary to several organizations including the Boys Scouts and the Girls Scouts of America, the United Negro College Fund, and the Cuban Families Committee.
Donald Trump, the Billionaire former President, also donated his salary to charities and organizations as part of his 2016 election promise.
How does salary of US President fair against world leaders
Although the US president receives a healthy annual salary, the world’s toughest job is not the highest paid government affiliated job in the world. The highest paid World leader is Lawerence Wong, the Singaporean President, who receives an annual salary of $1.69 million (Rs. 14.20 crores).
Hong Kong’s John Lee Ka-chiu ranks second on the list of the highest paid World leaders. According to the South China Morning Post, the Chief Executive of Hong Kong earns an annual salary of $672,000 (Rs 5.64 crores). Switzerland’s President, Viola Amherd, is next on the list with an annual salary of $570,000 (Rs 4.8 crores) per year. The Australian Prime Minister, Anthony Albanese, also enjoys a higher salary than an American president of nearly $550,000 (Rs. 4.62 crores) per year.
While there are a handful of global leaders with higher pay packages than the US president, there are many global leaders that earn fractions of the salary of the US president. The Ethiopian prime minister earns $1,700 (Rs. 1.4 lakh), the Nigerian president earns $2,200 (Rs. 1.8 lakh) annually, while the Mongolian Prime Minister earns an annual salary of $3,800 (3.18 lakhs).
Next US president will be worst paid
Due to rising inflation in the country, the next President is likely to be the worst paid US president out of all Presidents in history. George Washington, who became the first American president in 1789, was offered $25,000 to do the job. Converted to match today’s inflation is equivalent to $895,741 (Rs. 7.5 crore) today.
SInce then, the salary of the president remained the same until 1873, after which it was hiked up to $50,000, equivalent to $1,313,754 in today’s time. In 1909, when William Howard Taft became the American President, he received $75,000 as annual compensation for the post, which today’s time is equivalent to $2,588,634.
Forty years later, the President’s salary was hiked to $100,000 per year, which in today’s time would be worth around $1.32 million. By 1969, the president’s salary was raised to $200,000, which would be $1.7 million today. The president’s salary was raised again in 2001 to $400,000. Since then, the President’s salary has not been changed and with inflation running at a record high it is worth much less than what it was thirty or forty years ago.
Even though salary is not the primary motivator for both Kamala, who has net worth of 8 million and Trump, who is a billionaire, or another candidate it definitely plays a role in ensuring a fairness and integrity of the post.
