These are the States where Minimum Wages Are Rising in This Year

Workers can look forward to a higher minimum wage as the calendar turns towards 2023.

That’s occurring as the federal minimum wage stands pat at $7.25 per hour — the same rate since 2009.

Many cities and states have their rates and many will go up in the coming years.

26 states indicated that they would increase minimum wage in 2023. The report suggests that an additional state could be subject to adjustment in July. research Wolters Kluwer Legal & Regulatory U.S. experts in payroll

This report shows that Washington, D.C. and 23 other states have been added. Economic Policy InstituteThe minimum wage will rise 1 January. 8,000,000 workers will benefit from these minimum wage increases. These range from 23c to 1.50/hour.

Wolters Kluwer claims that Washington will have the highest minimum wage rate of $15.74 an h.

Workers below 16 years of state age will begin receiving $13.38 an hour. This is 85% less than the adult minimum wages.

Washington, D.C., will have a minimum hourly wage of $16.10

Washington, D.C. has tied its minimum wage to the Consumer Price Index. It is a government measure of what consumers pay for certain goods.

“There’s quite a few states across the country that will be seeing quite big jumps in the minimum wage because of the higher rate of inflation this past year,” Deirdre is a Wolters Kluwer senior payroll analyst.

Other states will keep enacting increases by legislation. States that do not see minimum wage increases in 2023 will continue to tie their base salaries to $7.25/hour federal rates.

President Joe Biden has campaigned To increase the federal minimum wage to $15 an hour from $15. He signed an executive order in 2022 This should be increased for both federal workers and contractors.

To increase the national rate to $15 an hour, Congress would have to approve a broad change. There have been attempts to raise the national rate. failed to make it into Covid-19 relief legislation 2021

“As the gap between that and the federal minimum wage increases, it will be interesting to see if that can kind of spur more momentum for more states to increase their wages or try and get more momentum on the federal level,” Kevin Werner (Research Associate, Income and Benefits Policy Center) said:

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A study by Urban Institute found that increasing the national minimum wage from $15 to $15 an hour would have significant effects on 56 million workers. report released in September.

Two scenarios were found in which a $15 minimum salary would cause job losses. The first was when there was no job loss, and the second was when there was.

“Even in our highest job loss scenario, we still found that on average, the average worker was better off, and that poverty declined overall,” Werner said.

“Even though some individual people who lost their jobs may have been worse off, the net effect was still positive,” He stated.

Werner claims that the $15 minimum wage is most detrimental to those over 25 years old. A third of these workers are the sole income earner for their family.

People who are dependent on the minimum wage are more likely be of color and to live in poverty. Werner explained that a national increase in the minimum wage would be beneficial to vulnerable individuals.

Holly Sklar, CEO of Business for a Fair Minimum Wage (a network that includes executives, owners, and business organisations) stated that raising minimum wages could help increase consumer demand as well as put money back into local economies.

“Putting needed raises in minimum wage workers’ pockets [is] really the most efficient way you can boost the economy,” Sklar was declared. “Those are the people who have to go right back around and spend it.”

Many large corporations are already taking steps to raise their wages, despite uncertainty over federal action to increase minimum wage.

Costco American store workers were paid a higher minimum salary. $16 per hourWhile Target, Amazon Walmart We all have moved to $15 an hr for hourly workers

Werner noted that the economy had been growing since the Covid shut down. This has increased competition among workers and resulted employers offering lower wages and start bonuses for workers with lower incomes.

“It’s giving low-income workers more leverage than they had before,” He stated.