Australian Prime Minister to Earn More than Joe Biden

Australian Prime Minister Anthony Albanese during interviews at Parliament House in Canberra, Australia, on May 15, 2024. Tracey Nearmy/Getty Images

Australian Prime Minister Anthony Albanese will soon replace U.S. President Joe Biden as the third-highest-paid world leader, following the latest pay rise for all federal politicians.

On June 17, the independent Remuneration Tribunal announced a 3.5 percent salary increase for federal public officers effective July 1, 2024. This follows a 4 percent increase in 2023 and a 2.75 percent rise in 2022.

Consequently, Mr. Albanese’s salary will rise from $587,000 (US$391,500) to roughly $607,500 (US$405,000).

In comparison, the U.S. president’s salary is $600,000 per year, which has remained unchanged since 2001.

This marks the first time in history that an Australian prime minister earns more than the U.S. president.

Meanwhile, the world’s second-highest-paid leader is Switzerland President Viola Amherd, whose salary is $823,000.

Singapore Prime Minister Lawrence Wong remains the highest-paid world leader, earning $2.5 million annually.

Remuneration Tribunal’s Decision

In making its decision, the tribunal said it had considered many factors.

This includes the recent Fair Work Commission’s ruling to raise the minimum wage by 3.75 percent, the overall wage inflation of 4.1 percent among Australian workers, and the inflation rate of 3.6 percent in the 12 months to March 2024.

“The Tribunal’s primary focus is to provide competitive and equitable remuneration that is appropriate to the responsibilities and experience required of the roles, and that is sufficient to attract and retain people of calibre,” it said in the ruling.

“Many of these office holders do not expect or require that monetary compensation for their roles in the public sector be set at private sector levels.

“Rather, office holders serve for the public good and the opportunity to influence economic and social policy initiatives.”

The Tribunal also noted that the total remuneration increase it had awarded public officers since 2015 was 18.25 percent, well below the overall remuneration increase in both public and private sectors of 24.4 percent during the period.

Salary Increase for Other Officials

With the latest pay rise, the base salary for MPs will go up by about $8,000 per year, taking the annual minimum pay of a backbencher to $233,660.

This also resulted in Australian federal MPs becoming the second-highest-paid politicians in the world, just ahead of Israeli MPs ($232,000 per year) and below U.S. congress members ($263,000 per year).

Some notable figures in the parliament chamber will also enjoy a significant pay increase.

Deputy Prime Minister Richard Marles’ salary will rise to $478,968, while Treasurer Jim Chalmers and Foreign Affairs Minister Penny Wong will see their remuneration increasing to about $438,081.

Opposition Leader Peter Dutton’s salary will rise by $14,640 to $432,280, while members of the shadow cabinet will earn $292,054.