Montgomery County's minimum wage is set to increase on July 1, 2025, reflecting the region's inflation rate, as mandated by County law. The adjustments will see a 50-cent per hour increase across all employer sizes. Effective July 1st, large employers (those with 51 or more employees) will be required to pay a minimum wage of $17.65 per hour. Mid-size employers (11-50 employees) will see their minimum wage rise to $16 per hour, and small employers (10 or fewer employees) will be required to pay $15.50 per hour.
The wage increase is directly tied to the 2.9 percent rise in the consumer price index for all urban wage earners and clerical workers in the Washington, D.C.-Arlington-Alexandria area in 2024. This increase over the 2.8 percent seen in 2023 triggered the adjustment, which the County says ensures the local minimum wage maintains its purchasing power in the face of rising costs.
“Raising the minimum wage to account for inflation is an important step in ensuring that all Montgomery County workers can earn a fair wage that supports their well-being,” Montgomery County Executive Marc Elrich said in a statement. “As the cost of living continues to rise, this increase helps workers and families keep pace while also benefitting local businesses by putting more money back into our community. By indexing the minimum wage to inflation, we are providing a long-term solution that adjusts to economic conditions, making sure that working people are rewarded fairly for their contributions and that our local economy stays strong and resilient.”
County estimates state that this minimum wage increase will boost the income of those receiving the minimum wage by $1,040 this year. The minimum wage law was passed by the Montgomery County Council in 2017, and was spearheaded by Elrich, who was a Councilmember at that time.
1 comment:
It will be devoured by the proposed state taxes!
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