diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7824f1e3e8..29bbe8c280 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - Election provider: use a geometric deposit base calculation for EPM signed submissions in Polkadot and Kusama ([polkadot-fellows/runtimes#56](https://github.com/polkadot-fellows/runtimes/pull/56))
 - Make `IdentityInfo` generic in `pallet-identity` ([polkadot-fellows/runtimes#87](https://github.com/polkadot-fellows/runtimes/pull/87)). Context: https://github.com/paritytech/polkadot-sdk/pull/1661
 - Whitelist `force_default_xcm_version` in XCM call filter ([polkadot-fellows/runtimes#45](https://github.com/polkadot-fellows/runtimes/pull/45))
+- Update the fellowship salary budget amount in alignment with the Fellowship Salary [RFC](https://github.com/polkadot-fellows/RFCs/pull/50) ([polkadot-fellows/runtimes#121](https://github.com/polkadot-fellows/runtimes/pull/121))
 - Set up an account ID for the local root location on Polkadot Collectives ([polkadot-fellows/runtimes#125](https://github.com/polkadot-fellows/runtimes/pull/125))
 - Increase confirmation period for treasury spend tracks on Polkadot & Kusama ([polkadot-fellows/runtimes#119](https://github.com/polkadot-fellows/runtimes/pull/119))
 
diff --git a/system-parachains/collectives/collectives-polkadot/src/fellowship/mod.rs b/system-parachains/collectives/collectives-polkadot/src/fellowship/mod.rs
index fe7ade4a12..fb2c340a88 100644
--- a/system-parachains/collectives/collectives-polkadot/src/fellowship/mod.rs
+++ b/system-parachains/collectives/collectives-polkadot/src/fellowship/mod.rs
@@ -249,7 +249,7 @@ impl pallet_salary::Config<FellowshipSalaryInstance> for Runtime {
 	// 15 days to claim the salary payment.
 	type PayoutPeriod = ConstU32<{ 15 * DAYS }>;
 	// Total monthly salary budget.
-	type Budget = ConstU128<{ 100_000 * USDT_UNITS }>;
+	type Budget = ConstU128<{ 250_000 * USDT_UNITS }>;
 }
 
 parameter_types! {