Former U.S presidents do not even earn half of what Ex-Somali president gets as annual retirement salary.
Although the former president lives in Tanzania, the cabinet approved of his retirement package last week.
Local media reports that the amount is expected to cover security, living and travel expenses as well provision for family members.
Information minister of Somalia Abdirahman Osman put all the information on social media after cabinet met.
The Somali government also approval of an amended media law and new laws against terrorism.
Although cabinet settled on that staggering amount for former President Hassan Sheikh Mohamud the decisions have been forwarded to Parliament for approval, the information minister noted.
Hassan Sheikh Mohamud lost the February 8 elections held in a hangar at the Mogadishu international airport.
The sitting president Mohamed Abdullahi Mohamed Farmaajo won the second round of voting in which 275 parliamentarians and 54 senators cast ballots.