The 46-year-old was previously making $1.65 million per year.
According to Michael Casagrande of AL.com, Sarkisian is tied for the highest annual salary among Division I assistant coaches with Auburn defensive coordinator Kevin Steele.
The former USC and Washington head coach first become Alabama's offensive coordinator in 2016 but left after one season to join the Atlanta Falcons in the same role. After a pair of up-and-down seasons in the NFL, he returned to Tuscaloosa in 2019 to lead the No. 2 scoring offense in the nation, which posted an average of 47.2 points per game.
He had other potential opportunities this offseason, including Colorado's head coaching job and the Arizona Cardinals offensive coordinator position, but he removed himself from consideration from both.
Alabama rewarded him generously for staying.
Sarkisian will guide an offensive unit led by elite playmakers Najee Harris, DeVonta Smith and Jaylen Waddle. Mac Jones is expected to take over at quarterback after playing well in limited action last season, though he'll receive heavy competition from Bryce Young.