The decision to raise the minimum wage in the US came into effect in 22 states on January 1. Increased minimum wages are planned to provide economic support to approximately 10 million workers in the country.
The US-based Economic Policy Institute said in a research paper published on December 21 that higher basic wages will provide 9.9 million workers with about $7 billion in additional wages annually.
The post-increase will raise base wages in three states - California, New York and Washington - to at least $16 an hour. In addition to wage increases in the states, 38 cities will also raise their minimum wages.
Denver, for example, will raise the city's minimum wage to $18.29 an hour on January 1, while Colorado will raise its minimum wage to $14.42 an hour. Nevada and Oregon's new minimum wages, which take effect July 1, will be $12 and $14.20 an hour, respectively, plus an inflation adjustment. Florida will raise its minimum wage to $13 an hour on September 30.
In addition, 12 states in the US that raised wages indexed their base salaries to inflation. Thus, a regulation preventing workers from losing purchasing power when prices rise.
Inflation in the US reached its highest level in 40 years in 2022 and workers had to struggle with higher costs in the last 2 years.
On the other hand, the federal minimum wage in the US has not changed since 2009 and has remained at $7.25 per hour. Since then, inflation has increased by more than 40 percent.
