In July, several states, counties, and cities in the United States will raise their minimum wages, providing pay increases for hundreds of thousands of workers. These wage hikes come at a time of high inflation, offering a much-needed financial boost for workers in areas where living costs continue to rise.
The federal minimum wage, stuck at $7.25 an hour since 2009, remains unchanged. However, many state and local governments are stepping in, addressing the gap with minimum wage hikes that affect more than 880,000 workers collectively.
States With Significant Increases
Several states will see notable increases in their minimum wage in July, including Alaska, Oregon, and Washington, D.C.
In Alaska, the minimum wage will rise from $11.91 to $13.00 per hour, an increase of $1.09. Oregon’s wage will also see a modest boost, with the current minimum of $14.70 rising to $15.05.
Workers in Washington, D.C., will experience an increase from $17.50 to $17.95 per hour. While these increases may appear modest on the surface, they are expected to provide considerable financial relief to workers facing steep living costs, particularly in high-demand areas.
California Cities and Illinois
California is also seeing wage increases in several cities. From Alameda to Santa Monica, the minimum wage will rise by up to 3%. Cities like Berkeley and San Francisco will see the largest increases, with hourly wages rising from $18.67 to $19.18.
These adjustments reflect California’s ongoing struggle with a high cost of living, which has driven local governments to take action on behalf of workers.
In Chicago, the minimum wage will increase from $16.20 to $16.60 per hour. Tipped workers will see a larger increase, with their hourly rate jumping by $1.60, from $11.02 to $12.62. Meanwhile, in Montgomery County, Maryland, the minimum wage will rise from $17.15 to $17.65 per hour.
These adjustments come at a time when the country’s inflation rate continues to impact consumer prices, placing additional pressure on workers in urban areas.
With a collective wage increase of over $397 million, these changes will directly impact nearly 900,000 workers across the United States.
According to the Economic Policy Institute, these increases are an essential response to high living expenses, providing significant financial relief to those working in areas where the cost of housing, food, and healthcare continues to rise.