Notice

Bill to Increase Borough Compensation Maximums Signed into Law

House Bill 2265, sponsored by Representative Kyle Donahue (D-Lackawanna), was signed by Governor Josh Shapiro after the bill was passed with a bipartisan vote of 49-1 by the Pennsylvania Senate on Tuesday October 22, 2024. Act 131 will increase the maximum allowable compensation for borough council members and mayors. The maximum allowable compensation for borough officials had not been updated since 1995.

Act 131 does not directly increase any official’s compensation since boroughs must set compensation locally through ordinance. Commensurate with the Pennsylvania Constitution, any changes to a borough official’s compensation cannot take effect until the beginning of the official’s next term of office.

In addition to raising the compensation maximums, Act 131 allows boroughs to pay officials on a per meeting basis and provides for excused absences from meetings. 

Act 131 also clarifies that if a future federal census pushes a borough below a certain population threshold, the borough would not be required to lower borough officials’ compensation.

Listed below are the current compensation maximums for council members and the new increase under Act 131.

• Boroughs with a population of less than 5,000, are currently capped at a maximum of $1,875 per year. Act 131 sets the new maximum at $3,145 per year.
• Boroughs with a population of 5,000 or more but less than 10,000, are currently capped at a maximum of $2,500 per year. Act 131 sets the new maximum at $4,190 per year.
• Boroughs with a population of 10,000 or more but less than 15,000, are currently capped at a maximum of $3,250 per year. Act 131 sets the new maximum at $5,450 per year.
• Boroughs with a population of 15,000 or more but less than 25,000, are currently capped at a maximum of $4,125 per year. Act 131 sets the new maximum at $6,915 per year.

Listed below are the current compensation maximums for mayors and the new increase under Act 131.

• Boroughs with a population of less than 5,000, are currently capped at a maximum of $2,500.  Act 131 sets the new maximum at $4,190 per year.
• Boroughs with a population of 5,000 or more but less than 10,000 are currently capped at a maximum of $5,000.  Act 131 sets the new maximum at $8,385 per year.
• Boroughs with a population of 10,000 or more but less than 15,000 are currently capped at a maximum of $7,500. Act 131 sets the new maximum at $12,575 per year.
• Boroughs with a population in excess of 15,000 are currently capped at a maximum of $500 per year per 1,000 residents or fraction of 1,000.  Act 131 sets the new maximum at $840 per year per 1,000 residents or fraction of 1,000. 

Act 131 takes effect on December 30, 2024.  New compensation will not take effect until a local ordinance is enacted, and the new compensation applies to the next term of office after the ordinance is enacted.