Indonesian Political, Business & Finance News

Not New York: This US Mayor Earns the Highest Salary, Billions of Rupiah

| Source: CNBC Translated from Indonesian | Politics
Not New York: This US Mayor Earns the Highest Salary, Billions of Rupiah
Image: CNBC

Managing a city in the United States can pay up to nearly US$400,000, or around Rp7.2 billion, per year. However, the mayor with the highest salary in the country has chosen to accept only US$1, or about Rp18,000. This disparity illustrates that the salary of a regional head in the US is not determined by a single factor. Population size, the city’s budget, cost of living, and government structure all influence the amount of compensation a mayor receives. Data compiled by Business Insider from the latest reports for the 2023-2026 period shows the annual salaries of the 10 highest-paid mayors in the US range from US$250,000 to US$393,097. California dominates the top three positions. The state is home to the highest-paid mayors in the United States, with the top three all coming from California, making it the only region on the list that pays its mayors more than US$300,000 per year. The first position is held by San Francisco Mayor Daniel Lurie with an annual salary of US$393,097. Below him is Los Angeles Mayor Karen Bass, who receives US$328,395, followed by Oxnard Mayor Luis A. McArthur at US$323,282. However, the most interesting figure is Daniel Lurie. The philanthropist and heir to the Levi Strauss family has chosen to accept only a symbolic salary of US$1, despite being entitled to full compensation from the San Francisco City Government. A large population does not guarantee a higher salary for a mayor. New York, the largest city in the United States with approximately 8.58 million residents, ranks only seventh with an annual salary of US$258,750. Conversely, Florida City, with a population of only about 13,576 people, is in the top eight with a mayoral salary reaching US$250,328 per year. A similar contrast is seen in Rosemont, Illinois. The small town of about 3,815 residents ranks sixth with a mayoral salary of US$260,000. This amount does not solely reflect the city’s size; Bradley Stephens is also known to serve concurrently as village manager and economic development director, giving him a broader scope of responsibility than a typical mayor. New York Mayor Zohran Mamdani, who ranks seventh with an annual salary of US$258,750, also drew attention. He made history as New York’s first Muslim mayor and the first of South Asian descent. In July 2026, Mamdani rejected a City Council proposal to raise his salary to US$305,800 per year, stating the increase would not improve the lives of New Yorkers. In contrast to the US, where each city has the flexibility to determine its mayor’s compensation, the income scheme for regional heads in Indonesia is regulated nationally. An Indonesian regent or mayor receives not only a basic salary but also a position allowance, various operational cost components, and facilities attached to the office in accordance with government regulations. The basic salary for a regional head is relatively small. Based on Government Regulation Number 59 of 2000, the basic salary for a regent or mayor is set at Rp2.1 million per month, while the deputy head receives Rp1.8 million per month. This nominal amount is even lower than the basic salary of some civil servants. However, the basic salary is not the largest component of a regional head’s total income. The position allowance has a greater value. Based on Presidential Decree Number 68 of 2001, the position allowance for a regent or mayor is Rp3.78 million per month, while the deputy head receives Rp3.24 million. Beyond these two components, regional heads also receive various state facilities, ranging from official residences and their maintenance costs to official vehicles and operational costs to support the execution of governmental duties. The most differentiating component of a regional head’s income between regions is not the basic salary, but the operational costs. Government Regulation Number 109 of 2000 stipulates that the amount of operational support costs is determined based on the region’s Own-Source Revenue (PAD). The larger a region’s PAD, the higher the operational cost limit that can be allocated. For regions with a PAD of up to Rp5 billion, the operational cost is set at a minimum of Rp125 million and a maximum of 3% of PAD. Meanwhile, regions with a PAD above Rp150 billion can allocate operational costs at a minimum of Rp600 million and a maximum of 0.15% of PAD. This scheme means the total facilities received by a regional head can differ, even though the basic salary and position allowance are the same. The fundamental difference between Indonesia and the United States lies not in the amount, but in the calculation method. In the US, a mayor’s salary is determined by each city government, resulting in a wide variety of compensation. In Indonesia, the basic salary for regional heads is set nationally, with differences in total income primarily arising from the position allowance, operational costs linked to the region’s fiscal capacity, and various attached state facilities.

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