How much does the Prime Minister earn? Salary and expenses explained
Liz Truss won the Conservative leadership election on Monday (September 5) and, without wasting time, was officially appointed the new Prime Minister by the Queen on Tuesday.
Becoming the third female PM in British history, Ms Truss has got to work with a huge Cabinet reshuffle, sacking the likes of Dominic Raab and appointing new senior roles, including Secretary of Health and Transport Secretary.
Leading the government through a worsening cost of living crisis, amongst other issues, it’ll be a busy time for the PM – who plans to stick around until at least 2024, when the next General Election could take place.
So, for all the stress, how is she compensated? Here’s how much the PM makes…
How much does the Prime Minister earn?
The Prime Minister is entitled to an annual salary of £164,080.
Their earnings are made up of two different payments – £79,936 for their role as Prime Minister, and an additional £84,144 as an elected Member of Parliament.
As PM, Ms Truss will also receive an annual allowance of up to £115,000 a year to cover costs arising from fulfilling public duties.
This £115,000 is known as the Public Duty Cost Allowance (PDCA), and it was introduced by John Major in 1991 after Margaret Thatcher struggled to meet ongoing administrative demands following her resignation.
MPs also receive expenses to cover the costs of running an office, employing staff, having somewhere to live in London or their constituency, and travelling between Parliament and their constituency.
The Independent Parliamentary Standards Authority (IPSA) has set and administered MPs’ pay since 2011.
How much do other world leaders make?
While a pretty penny for the average person, the British PM makes considerably less than heads of state and government elsewhere.
The US President, for example, is entitled to an annual salary of $400,000 (approx. £348,000).
The German Chancellor, Angela Merkel, pulls in an annual salary of €315,307 (approx. £272,000).
Other salaries include:
- Prime Minister of France – approx. €142,000 per annum (£122,000)
- Prime Minister of Spain – €83,000 per annum (approx. £71,500)
- President of Switzerland – 454,581 Swiss Francs per annum (approx. £402,000)
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