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Local Government Compensation Limit & Waiver Process

Minnesota State Statute 43A.17 limits the salary and the value of other forms of compensation of a person employed by a political subdivision of this state, excluding school districts.   The compensation limit was originally established in 2005 as a percent of the governor’s salary with annual increases to this limit based on CPI-U increase over the prior year.    Refer to Subdivision 9, of Statute 43A.17 .

 The current compensation limit and historical compensation limits are in the following link: Local Government Compensation Limit by year

 If a local government wants to pay a position compensation that is above the limit, a request must be submitted and approved by the Commissioner of Minnesota Management & Budget.  To request a waiver to the limit, please complete the  Compensation Limit Waiver Request (word version) (pdf version) , and send the completed form to the Commissioner of Minnesota Management & Budget .

 If a local government has waiver approval for a position to exceed the limit, the new limit is increased annually by the amount of the CPI-U increase in the chart.  The most recent and historical adjustment percentages are in the following link: Local Government Compensation Limit by year