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Key events in the United States, Mexico, Brazil, and Las Vegas will test Mercedes’ progress.
Ultimately, the measure of the deal is competitive return.
Driver adaptability will be at a premium.
Locking in Russell now gives Mercedes a stable reference for simulator work, correlation, and concept direction, reducing variables before the regulation change bites.
The broader driver market continues to inflate top-tier salaries, reflecting not only lap-time value but also development input and global commercial reach.
Officially, the contract runs to 2026, with a 2027 option understood to be under consideration.
The new contract not only reflects his performance but also the team’s confidence that he can spearhead their challenge to return to championship-winning form. His reported salary places him among Formula 1’s top five earners — a clear statement that Mercedes see him as the cornerstone of their next era.
George Russell has officially signed contract extension at Mercedes for 2026 Formula 1 season.
We’re here to focus on winning in 2026, and that’s that.”
F1 2026 driver salaries
Max Verstappen Red Bull $75 million Lewis Hamilton Ferrari $57 million Lando Norris McLaren $35 million George Russell Mercedes $30 million Fernando Alonso Aston Martin $27.5 million Charles Leclerc Ferrari $27 million Oscar Piastri McLaren $25.9 million George Russell Mercedes $23 million Carlos Sainz Williams $19 million Pierre Gasly Alpine $12 million Esteban Ocon Haas $6 million Nico Hulkenberg Sauber $5 million Alex Albon Williams $3 million Lance Stroll Aston Martin $3 million Liam Lawson Red Bull $3 million Yuki Tsunoda Racing Bulls $3 million Kimi Antonelli Mercedes $2 million Gabriel Bortoleto Sauber $2 million Oliver Bearman Haas $1 million Franco Colapinto Alpine $500,000 – $1 million Isack Hadjar Racing Bulls $500,000 – $1 million
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The timing signals Mercedes’ commitment ahead of the 2026 power unit and chassis reset, where stability and driver feedback are likely to be decisive.
Verstappen is understood to lead the field on roughly £48 million at Red Bull, with Hamilton’s Ferrari move valued near £45 million.
Where does Russell’s reported salary rank after new Mercedes contract?
George Russell will supposedly feature amongst the top four best-paid drivers on the Formula 1 grid next season after a reportedly huge $7million increase in his basic Mercedes salary.
After months of speculation surrounding the future of Russell, Mercedes finally put that to rest earlier this week with confirmation that the Briton will continue with the Brackley squad for next season.
George Russell has reportedly secured a huge increase in his Mercedes salary
Joining Mercedes in 2022 on the back of three years with the Mercedes-powered Williams team, Russell stepped up into the team leader role this season following the departure of Lewis Hamilton to Ferrari.
While it hasn’t been the title tilt he dreamt of, the Briton is one of only four drivers to win a grand prix having stood on the top step of the podium in Canada and again in Singapore.
But despite Russell having his best season in Formula 1 to date, his contract negotiations with Mercedes dragged on, even after Toto Wolff’s dream target Max Verstappen reaffirmed his commitment to Red Bull.
Formula 1’s rumour mill speculated it was anything and everything from salary to duration of the contract to PR days.
But it seems, at least when it came to salary, Russell came out on top – if reports and rumours are to be in any way believed, of course.
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The new agreement underlines Russell’s status within Brackley. The figure places the British driver among F1’s elite, reflecting his growing stature within the team and across the grid.
According to the Independent, the new deal is worth around £30m annually, putting Russell’s earnings in line with Charles Leclerc at Ferrari, and not far behind Lewis Hamilton and Max Verstappen, who command the two largest salaries in the sport.
Team principal Toto Wolff said the extension had always been expected, describing Russell and Antonelli as “a strong pairing” for the team’s next chapter.
“Confirming our driver line-up was always just a matter of when, not if,” Wolff explained.
“We wanted to take our time, handle the negotiations properly and make sure everyone, on all sides, was happy. George and Kimi have proved a strong pairing and we’re excited to continue our journey together.”
Mercedes back Russell to lead their new generation
Russell joined Mercedes in 2022 after impressing with Williams and has since evolved into the team’s cornerstone driver following Hamilton’s switch to Ferrari.
We are all incredibly focused on making that a success and, for me personally, building on what has been my strongest season in F1 to date.”
Currently fourth in the Drivers’ Championship with 237 points, Russell has delivered one of his most complete campaigns to date, taking wins in Canada and Singapore while consistently finishing inside the top five.
Only Max Verstappen's and Lewis Hamilton will be earning more then him with their respective deals at Red Bull and Ferrari.
CONTRACT
DETAILS
Team
Mercedes
Duration
One Year (2026) plus option to extend until 2027
Base Salary
$40 million (£30m) per year
Performance Bonuses
Up to $8 million annually (based on wins & podiums and championship title)
Total Package (Est.)
$48 million per year
Contract Until
End of 2026 Season
Source
SkySports, The Guardian, BBC
What This Means for the F1 driver salary negotiations & expectations?
Mercedes has made the statement that the team believes, with George Russell behind the wheel, they can challenge for the 2026 F1 Championship.
However this deal also put cold water on Max Verstappen rumours joining Mercedes anytime before 2028, meaning Russell now carries the full weight of Mercedes’ championship hopes.
He provides consistent pace, strong qualifying peaks, and dependable race execution as Mercedes works to close the competitive gap.
Regulatory changes for 2026 will recalibrate car characteristics, with revised hybrid power units and significant aerodynamic shifts.
George Russell signs a hefty new Mercedes contract – now trailing only Verstappen and Hamilton. 💸 Mercedes’ #1 bet for the future, earning £30m a year.
I’m pleased we have done that.
Daniel Miller
Daniel Miller reports on Formula 1 Grand Prix weekends with race-day analysis, team-radio highlights, and point-standings updates. Initial contract is for 2026 F1 season but Mercedes hold the option to extend until 2027. His new contract, worth $40 million per year, sets a new benchmark for future F1 driver negotiations considering he negotiated massive base salary without winning F1 title
With this kind of base salary, Russle will have to be competitive at the very top and will be judged if he is not in title contention come end of the season.
Sources indicate discussions include a 2027 option, with the term length the key sticking point during negotiations.
Russell’s new deal is believed to be worth about £30 million per year, placing him third on the F1 pay scale.