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Local Government Compensation Limits

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.

The Bureau of Labor Statistics releases the monthly readings for the Consumer Price Index in the second half of the following month. The October readings are typically released after November 15th, therefore Minnesota Management and Budget will calculate and post the salary limit for the next calendar year in late November of each 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

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