After 14 years, the minimum wage in the United States has finally increased in more than 20 states in North America. Effective from January 1, hourly pay for the workday will increase. This measure was not applied in all states simultaneously, and the details of the salary increase in each state will be provided in this article.
The increase of the minimum wage in the United States is a positive change for workers in formal companies as they will be able to earn a few extra dollars compared to previous years. This new measure will represent a total of $5 billion in wage increases and will benefit more than 8.4 million workers in the formal sector.
Federal minimum wage in the United States has remained at $7.25 dollars per hour since 2009, which is the longest period workers have gone without a wage increase. Raising the minimum wage requires congressional approval and the president’s signature, so it does not adjust automatically. President Joe Biden, along with some progressive Democrats, proposed raising the federal minimum wage to $15, but this was not passed in Congress in 2022. However, there is an exception to the minimum wage for workers who receive tips, such as servers, who can have a wage of $2.13 per hour.
As of January 1, more than 20 states, including Alaska, Arizona, California, Colorado, and Delaware, have increased their minimum wage. For instance, in Arizona and Alaska, it increased from $12.80 to $13.85 and from $10.34 to $10.85, respectively. The minimum wage increase will vary depending on the state one is working in, and the details of the increase in each state are discussed in this article.
The minimum wage increase is a significant step towards improving the lives of workers in the formal sector, and it is hoped that this positive shift will continue in the future.