Salary Increase coming in 2025: Karen Bass announces pay raise for Los Angeles workers

Los Angeles Mayor, Karen Bass, has announced a minimum wage increase that will take effect in 2025. Starting from that year, all employers in the city will be required to pay their employees at least $17.87 per hour, in accordance with the local Minimum Wage Ordinance. This annual adjustment aims to align wages with the cost of living, providing better support for workers facing economic challenges in the region.

This wage hike is part of a series of progressive adjustments the city has made in recent years, aimed at ensuring workers earn a fair wage that reflects the cost of living in Los Angeles.

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Minimum Wage in Los Angeles 2025: Wage increase details

Starting July 1, 2025, the new minimum wage of $17.87 per hour will apply to all workers who work at least two hours a week within the city, regardless of the company's size. This adjustment is based on Section 187.02 of the local Municipal Code, which takes into account economic factors such as inflation and the consumer price index.

The Los Angeles Wage Standards Office will oversee the implementation of this regulation, providing guidance to both workers and employers to ensure compliance.

California Minimum Wage: Impact on the U.S. economy

The minimum wage increase in Los Angeles will have significant effects on various economic sectors. Workers in the service, retail, and hospitality industries will be the primary beneficiaries, as these sectors employ numerous low-wage workers. The expected outcomes include an improvement in workers' purchasing power, increased labor costs for employers, and greater economic stability for low-income workers, which could help reduce the wage gap in the city.

History of Minimum Wage increases in Los Angeles

Since July 2022, Los Angeles has implemented a series of progressive wage hikes. The minimum wage started at $16.04 per hour, increased to $16.78 in 2023, and reached $17.28 in 2024. This progressive increase will culminate in 2025 with the new wage of $17.87 per hour.

This approach aims to ensure that workers maintain their purchasing power in the face of inflation and high living costs, while also demonstrating the city’s commitment to improving working conditions and reducing economic inequalities.

Federal Minimum Wage in 2025

In the U.S., the minimum wage is determined at the federal, state, and sometimes local levels. Currently, the federal minimum wage stands at $7.25 per hour, a rate that has remained unchanged since 2009. However, many states and cities, like Los Angeles, have set higher minimum wages to better accommodate local living costs and other regional considerations.