Starting July 1, workers in several U.S. cities and states will find a boost in their paychecks with new minimum wage hikes taking effect. If you live in Alaska, Washington, D.C., or Oregon—or one of a dozen cities in California, Illinois, or Maryland—you might soon be earning more per hour.
This hike will impact more than 800,000 employees and enable the majority of families to ride out inflation. The salaries are rising from $13.00 in Alaska to up to $19.90 in the California regions.
Why are wages rising?
The federal minimum wage has stayed at $7.25 an hour since 2009. That is barely enough to survive on these days, with rent, food, and gasoline prices increasing. That’s why so many cities and states have jumped in and raised their minimum wages by state law, inflation indexing, or local ballot measures.
As noted by the Economic Policy Institute (EPI), these increases help women and minorities, who constitute the majority of minimum-wage earners.
What’s happening in Alaska, Oregon, and D.C.?
Contrast the changes in these three jurisdictions:
- Alaska: Minimum wage increases by $1.09 to $13.00 an hour, affecting about 19,400 employees. That’s a boost of about $925 annually for a worker who is a full-time worker.
- Washington, D.C.: Wages rise 45 cents to $17.95 an hour—one of the country’s highest. About 62,200 workers will benefit, earning an additional $727 a year for full-time work.
- Oregon: Workers will earn $15.05 an hour, up 35 cents. That bump benefits about 801,700 workers, earning a supplemental $420 a year.
California cities pioneering the change
California has the most cities adjusting. These are what are in store:
- Emeryville: Increases to $19.90/hr
- Berkeley and San Francisco: Both increase to $19.18/hr
- Los Angeles: Increases to $17.87/hr
- Santa Monica and Pasadena: Now at $17.81/hr and $18.04/hr
- Other cities like Fremont, Milpitas, and Alameda also see smaller but steady increases, ranging mostly from $17.46 to $18.20/hr
Other cities joining the raise
- Chicago, Illinois: Increased by 40 cents to $16.60/hr
- Montgomery County, Maryland: The new wage will be $17.65/hr
What this means for you
If you work in one of these cities or states, glance at your paystub in July—guarantee you’re receiving a raise. Even small hourly increases total hundreds more dollars annually. This means families can pay bills, buy groceries, and cover rising costs.
As the federal minimum wage stays put, it can be seen that local authorities are making up for the shortfall by offering their employees a living wage.
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