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The federal minimum wage is set to increase in 2021, but when will this raise take effect? We’ve got the details on when you can expect to see a bump in your pay.
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Introduction
The federal minimum wage is the lowest hourly pay that employers can offer workers for their labor. The current federal minimum wage is $7.25 per hour, which has been in effect since 2009. Several states and cities have enacted their own minimum wage laws that are higher than the federal minimum wage.
There have been several proposals to raise the federal minimum wage, and in February 2019, the House of Representatives passed a bill to raise the minimum wage to $15 per hour by 2025. The Senate has not yet voted on this bill, and it is not clear if it will pass. If it does not pass, the federal minimum wage will remain at $7.25 per hour.
Federal Minimum Wage Raise
The federal minimum wage is set to rise from $7.25 to $9.50 an hour by 2025, according to a bill that was recently passed by Congress. The first increase will take place in 2020, when the minimum wage will go up to $8.00 an hour. The minimum wage will then increase by 75 cents each year until it reaches $9.50 an hour in 2025. After that, the minimum wage will be adjusted for inflation.
Who Will Be Affected?
The federal minimum wage is currently $7.25 an hour. The last time it was raised was in 2009, when it went up from $6.55 to its current level. President Joe Biden has proposed raising the minimum wage to $15 an hour by 2025, and many workers and advocates are eager to see the change take effect. But even if Biden’s proposal becomes law, it will still take years for the full $15-an-hour wage to become reality.
Who will be affected? The simple answer is that anyone who earns the federal minimum wage or less will see a pay increase if the minimum wage is raised. But that number is deceptive. The true number of workers who would be affected is actually much larger.
According to the Congressional Budget Office (CBO), about 27 million workers would earn higher wages if the federal minimum wage was raised to $15 an hour by 2025. That represents about 16% of all workers in the United States. But when you include people who would likely see their wages go up as a result of a ripple effect (known as “indirect effects”), that number jumps to 33 million, or about 20% of all workers in the United States.
So who are these 33 million workers? They’re not all teenagers working part-time jobs at fast food restaurants. In fact, according to data from the Bureau of Labor Statistics (BLS), only about 1.3 million workers who would be directly affected by a minimum wage hike are under the age of 20. And only about 2 million are working part-time jobs.
How Much Will Wages Increase?
The answer to this question depends on a number of factors, including the state in which you live and the type of job you have.
In general, the federal minimum wage will increase from $7.25 to $8.00 per hour on January 1, 2015. This is the first time the minimum wage has been increased since 2009.
Some states have already increased their minimum wage rates for 2015, and more are expected to do so in the coming year. For instance, California’s minimum wage will increase from $8.00 to $9.00 per hour on July 1, 2014, while New York’s will increase from $7.25 to $8.00 per hour on December 31, 2014.
If you are employed in a tipped occupation (such as server at a restaurant), your minimum wage will be lower than $8.00 per hour. The federal minimum wage for tipped workers is currently $2.13 per hour, and it will remain unchanged in 2015.
When Will the Raise Take Effect?
The federal minimum wage is set to increase from $7.25 per hour to $7.50 per hour on January 1, 2020. The last time the minimum wage was raised was in 2009, when it increased from $6.55 per hour to $7.25 per hour.
How Often Will the Wage Raise?
The federal minimum wage will increase gradually over the next several years, reaching $15 per hour by 2025. After that, the minimum wage will be adjusted annually to keep up with inflation.
What About Cost of Living Increases?
In addition to the federal minimum wage, some states and localities have their own minimum wage laws. Where the state or local minimum wage is higher than the federal minimum, employers must pay the higher amount.
The Fair Labor Standards Act (FLSA) does not provide for cost-of-living adjustments of the minimum wage rate. Congress has often amended the FLSA to raise the minimum wage rate, and has done so several times in recent years.
What Else Should I Know?
While the federal minimum wage hasn’t increased in over a decade, some states and cities have been gradually raising their own minimum wage rates. In 2020, 29 states have a higher minimum wage than the federal level, with many of them gradually increasing to $15 per hour. California, Massachusetts, Illinois, and New York are among the states with upcoming plans to raise their minimum wage to $15 per hour.
In light of these changes, businesses should make sure they know what the minimum wage is in their state or city and plan accordingly. Employees should also be aware of changes in the minimum wage and how it might affect their paychecks.
Conclusion
As of now, the federal minimum wage is $7.25 per hour. However, there has been talk of raising the minimum wage to $15.00 per hour. The raising of the minimum wage has been a controversial topic, with some people for and against the raise.
Those who are for the raise argue that it will help workers who are struggling to make ends meet. They argue that $15.00 is a livable wage and that raising the minimum wage will help to close the inequality gap. Those against the raise claim that it would be disastrous for small businesses and could lead to job loss. They argue that raising the minimum wage would be too much of a burden for small businesses and could lead to price increases for consumers.
As of now, it is unclear when or if the federal minimum wage will be raised to $15.00 per hour. However, several states and cities have already raised their minimum wages to $15.00 or more. It is possible that we will see a federal raise in the near future, but it is also possible that the issue will continue to be debated without any resolution in sight.
Resources
The federal minimum wage has not been raised since 2009, when it was raised to $7.25 per hour. There has been a lot of debate since then about whether or not to raise it again, and if so, by how much. The current administration has proposed raising it to $15 per hour by 2020, but that proposal is still being debated by Congress. In the meantime, many states and cities have raised their own minimum wages, so the effective minimum wage varies depending on where you live. You can find out more about the minimum wage in your state or city here:
-State Minimum Wages | 2019 Minimum Wage by State
-City Minimum Wages | 2019 Minimum Wage by City
