Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.
San Francisco's minimum wage is now $15 an hour - here's how that stacks up to other major cities
San Francisco's minimum wage is now $15 an hour - here's how that stacks up to other major cities
Leanna GarfieldJul 9, 2018, 23:35 IST
A pedestrian walks by a McDonald's restaurant on January 30, 2018 in San Francisco, California.Getty Images
Advertisement
San Francisco has raised its minimum wage from $14 to $15 an hour, largely as a response to out-of-control housing prices. The law went into effect on on July 1.
An hourly wage of $15 is more than twice the federal rate of $7.25, but it's still not enough to live in San Francisco comfortably, according to an SFGate analysis of data from the National Low Income Housing Coalition. With a minimum-wage job, the numbers suggest, San Franciscans still need to work 160 hours per week to rent a two-bedroom home.
Minimum wage levels differ by city, but many activist groups in other metros are pushing for their own bumps to $15 per hour.
The Economic Policy Institute, a nonpartisan, nonprofit think-tank, has compiled a list of minimum wages in cities across the US. In some areas, workers who receive tips can make as little as $2.13 an hour.
Advertisement
Many cities follow state or federal minimum wage standards - even though the cost of living tends to be higher in urban areas than the rest of the state or country. In a process called indexing, some metros will soon begin adjusting minimum wage levels annually to account for inflation (based on the state or metro area's Consumer Price Index). Just six states currently have mandatory indexed increases, though several more have legislation in the works.
Take a look below at the minimum wage in 13 major US cities - the list is ordered based on each city's median rental cost for all housing types.
Upcoming increases:Statewide annual indexing will begin in April 2019, unless the unemployment rate is high. The hourly wage will rise to $10 in 2019, $10.65 in 2020, $11.35 in 2021, and $12 in 2022. Yearly inflationary adjustments could follow based on Michigan's Consumer Price Index. Under another proposal pending approval, tipped employees would be paid full minimum wage on top of their tips by 2024.
Median rental housing price: $800 per month
Note: Every city in Michigan follows state minimum wage standards.
Louisville — $7.25 an hour
Minimum wage: $7.25 an hour
Tipped wage: $2.13 an hour
Upcoming increases: None
Median rental housing price: $1,195 per month
Note: Every city in Kentucky follows federal minimum wage standards. In 2016, the state ruled that cities do not have the authority to raise the minimum wage.
Iowa City — $7.25 an hour
Minimum wage: $7.25 an hour
Tipped wage: $4.35 an hour
Upcoming increases: Annual indexing will begin in January 2021.
Median rental housing price: $1,325 per month
Most cities in Iowa follow federal minimum wage standards. In 2017, the state's former governor Terry Branstad signed a bill that limited the minimum wage in Johnson County (where Iowa City is located) to $7.25 — before a proposed $10.10 raise could take effect there.
Los Angeles — $13.25 an hour
Minimum wage: $13.25 an hour
Tipped wage: $13.25 an hour
Upcoming increases: The minimum wage will increase to $14.25 an hour starting in July 2019, then rise to $15 an hour in July 2021. Annual indexing is slated to begin in July 2022, based on LA County's Consumer Price Index.
Median rental housing price: $1,360 per month
Phoenix — $10.50 an hour
Minimum wage: $7.25 an hour
Tipped wage: $2.13 an hour
Upcoming increases: None
Median rental housing price: $1,395 per month
Note: Every city in Arizona except Flagstaff follows state minimum wage standards.
Baltimore — $10.10 an hour
Minimum wage: $10.10 an hour
Tipped wage: $3.63 an hour
Upcoming increases: None
Median rental housing price: $1,400 per month
Note: Most cities in Maryland follow state minimum wage standards.
Philadelphia — $7.25 an hour
Minimum wage: $7.25 an hour
Tipped wage: $2.83 an hour
Upcoming increases: None
Median rental housing price: $1,550 per month
Note: Every city in Pennsylvania follows federal minimum wage standards.
Houston — $7.25 an hour
Minimum wage: $7.25 an hour
Tipped wage: $2.13 an hour
Upcoming increases: None
Median rental housing price: $1,550 per month
Note: Every city in Texas follows federal minimum wage standards.
Chicago — $12 an hour
Minimum wage: $12 an hour
Tipped wage: $6.25 an hour
Upcoming increases: Minimum wage will increase to $13 an hour starting in July 2019. Annual indexing will begin in July 2020, with the hourly wage raising to $13.63 and the tipped wage to $6.53 in Chicago based on the metro area's Consumer Price Index.
Median rental housing price: $1,800 per month
Denver — $10.20 an hour
Minimum wage: $10.20 an hour
Tipped wage: $7.18 an hour
Upcoming increases: The minimum wage will go up to $11.10 per hour starting in January 2019, then rise again to $12 an hour in January 2020. Annual indexing will begin in January 2021, based on Colorado's Consumer Price Index.
Median rental housing price: $2,195 per month
Note: Every city in Colorado follows state minimum wage standards.
Miami — $8.25 an hour
Minimum wage: $8.25 an hour
Tipped wage: $5.23 an hour
Upcoming increases: None
Median rental housing price: $2,450 per month
Note: Every city in Florida follows state minimum wage standards.
Washington, DC — $13.25 an hour
Minimum wage: $13.25 an hour
Tipped wage: $3.89 an hour
Upcoming increases: Minimum wage will go up to $14 per hour in July 2019, then to $15 per hour in July 2020. Annual indexing will begin in July 2021, based on the DC metro area's Consumer Price Index.
Median rental housing price: $2,650 per month
New York City — $13 an hour
Minimum wage: $13 an hour
Tipped wage: $8.65 an hour
Upcoming increases: Minimum wage will go up to $15 an hour starting in January 2019.
