 "From salary to pension, how much does the US president make?")
When either Donald Trump or Kamala Harris becomes the next United States president, they will effectively become the leader of the free world. However, this world leader is still a federal employee and draws a salary from the State.
However, this pay is unlike any regular Joe’s pay. While the typical American earns an average of $44,500 (Rs 37.41 lakh) a year, the US president is paid $400,000 (Rs 3.36 crore) annually. But it doesn’t end with that. The US president also receives an extra allowance, a travel account and other perks such as an entertainment allowance and a pension after stepping down from office.
Want to know just how much moolah will the new US president rake in? What about how much it compares to older presidents? We have the answers you are looking for.
How much does a US president earn?
The US president is the highest political office title one can have in America. And owing to the seniority of the post, the US president earns an annual salary of $400,000 per year. The US president also receives a $50,000 (Rs 42 lakh) expense allowance, a $100,000 (Rs 84 lakh) non-taxable travel account and $19,000 (Rs 16 lakh) for entertainment each year. In total, this equals $569,000 (Rs 4.78 crore) for all of the US president’s expenses each year. As per American law, any amount not used from the $50,000 allowance, must be returned to the treasury.
According to a Business Insider report, US presidents also receive $100,000 to redecorate the White House once they’re elected. However, several presidents, such as Barack Obama, chose not to use the money and used their own funds to redecorate instead.
On the other hand, the US First Lady receives nothing.
This annual salary was last increased by the US Congress in 2001, just before George W Bush took office. Notably, Article II of the Constitution, the president’s income can’t be changed during the term he was elected to serve in.
Besides the salary, the US president gets free transportation in the presidential limousine, The Beast, Marine One and Air Force One , and, free accommodation at the White House. Another perk that the US president enjoys is an annual pension of about $200,000 (Rs 1.68 crore), as well as health care coverage and paid official travel.
Interestingly, the Founding Fathers were of the firm opinion that US presidents should be paid. Alexander Hamilton explained the reasoning in Federalist No 73, writing, “A power over a man’s support is a power over his will.” This essentially means that a US president who received no regular salary might be tempted to accept bribes from special interests or to be coerced by individual members of Congress.
Can a US president refuse a salary?
Legally speaking, US presidents are not allowed to decline their salary but can donate it to organisations of their choosing. According to congressional records, George Washington initially declined his $25,000 (Rs 21 lakh) salary, but Congress wouldn’t let him.
Since then, there have been a few men who have donated their presidential pay to charity. Herbert Hoover, who made his fortune in mining before taking office, donated his salary.
John F Kennedy, who was born into wealth, became the richest president when he ascended to power in 1961. He refused his presidential salary, giving it to charity of which the Boy Scouts and Girls Scouts of America, the United Negro College Fund, and the Cuban Families Committee were the biggest recipients.
Donald Trump, when he came to power, also donated his salary, keeping a 2016 campaign promise. He had vowed to donate his salary if elected president and he did.
How does it compare to other world leaders?
While the US president earns a tidy amount, the US Commander-in-Chief isn’t the world’s best paid. Currently, the world’s best-paid leader is Lawrence Wong, the prime minister of Singapore. He brings in an annual salary of the equivalent of almost $1.69 million (Rs 14.20 crore).
Hong Kong’s John Lee Ka-chiu ranks second on the list of highest-paid world leaders. According to the South China Morning Post, he earns roughly $672,000 (Rs 5.64 crore) a year. Switzerland’s President, Viola Amherd, comes in third, raking in $570,000 (Rs 4.8 crore) per year.
Australia ranks next, with Anthony Albanese taking home a pay package of nearly $550,000 (Rs 4.62 crore) per year.
On the other hand, the US president fares much better than the lowest-paid world leaders, which are Ethiopia’s prime minister, who earns, $1,700 (Rs 1.4 lakh), Nigeria’s president’s $2,200 (Rs 1.8 lakh) pay or Mongolian prime minister’s $3,800 (Rs 3.18 lakh) a year salary.
Why new US president may be the worst paid?
Analysts believe that while the position of the US president is powerful — almost the most powerful in the world — the pay doesn’t align with the responsibility. Moreover, it’s weakening year on year.
This is all thanks to inflation. Picture this. When George Washington took office in 1789, he received a salary of $25,000 (Rs 21 lakh), which according to inflation calculator on officialdata.org, is equivalent to $895,741.48 (Rs 7.5 crore) today. The presidential pay remained the same until 1873 when it was increased to $50,000 — today’s $1,313,754. In this period, deflation was almost as common as inflation, leaving the president generously compensated for most of that period.
In 1909, when William Howard Taft became president, the salary was once again bumped up to $75,000 — which is considered today to be $2,598,634.62.
Forty years later, in 1949, the president earned $100,000 a year — or $1.32 million today. By 1969, Congress raised the president’s salary to $200,000, which is about $1.7 million today. The president’s most recent raise came in 2001, up to $400,000.
Since then there has been no change in the presidential pay and with inflation running higher than expected, the next presidential salary could see a drop in actual value.
But, analysts, note the salary is hardly a reason why Kamala Harris or Donald Trump are contesting the November 5 elections. After all, Kamala Harris, the current US vice president has an estimated net worth of $8 million, whereas Donald Trump , the Republican contender, is worth an estimated $3.9 billion, as per a recent Forbes report.
Want to read more on the US elections, head to our presidential election page here .
With inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
