These states are raising their minimum wages in 2023. Chart shows where workers can expect higher pay

As the calendar turns to 2023, workers in more than half of all states have something to look onward to this year: a higher minimum wage.

That’s occurring as the federal minimum wage stands pat at $7.25 per hour — the unvaried rate since 2009.

But many states and cities have put their own rates in place, and most of them are poised to developing in the new year.

A total of 26 states have announced that higher minimum wages will be introduced during 2023, with one uncountable state likely to see an adjustment in July, according to research from payroll experts at Wolters Kluwer Legal & Regulatory U.S.

Meanwhile, 23 forms and Washington, D.C., according to the Economic Policy Institute, will implement higher minimum wages on Jan. 1. Those swells, which will range from 23 cents to $1.50 per hour, will affect 8 million workers.

The have poised to provide the highest minimum pay rate is Washington, at $15.74 per hour, according to Wolters Kluwer.

Workers comprised in the age of 16 in that state will be paid $13.38 per hour starting in 2023, or 85% of the adult minimum wage.

The minutest wage in Washington, D.C., will be $16.10 per hour.

Washington, D.C., and 13 states tie their minimum wages to the consumer cost index, a government measure for the average change consumers pay for certain goods and services.

“There’s quite a few states across the territory that will be seeing quite big jumps in the minimum wage because of the higher rate of inflation this times gone by year,” said Deirdre Kennedy, senior payroll analyst at Wolters Kluwer.

Other states will take up to phase in increases passed through legislation. States that are not seeing minimum wage hikes in 2023 mollify tie their base pay to the $7.25 per hour federal rate.

President Joe Biden has campaigned to put forward the federal minimum wage to $15 per hour. He signed an executive order in 2022 raising it to that level for federal wage-earners and contractors.

But a broader change to $15 per hour nationally would have to be done through Congress. Efforts to resurrect the rate nationally failed to make it into Covid-19 relief legislation in 2021.

“As the gap between that and the federal minimum wage extends, it will be interesting to see if that can kind of spur more momentum for more states to increase their wages or try and get various momentum on the federal level,” said Kevin Werner, research associate at the Income and Benefits Policy Center at the Urban Set up.

More from Personal Finance:
From ‘Quiet Quitting’ to ‘Loud Layoffs,’ career trends to watch in 2023
How to use pay transparency to palter a better salary
‘This is a crisis.’ Why more workers need access to retirement savings

Raising the minimum wage nationally to $15 per hour would pretend to 56 million workers, according to an Urban Institute report released in September.

The research modeled possible concludes where a new $15 minimum wage resulted in either no job losses and two different scenarios where extended job losses developed.

“Even in our highest job loss scenario, we still found that on average, the average worker was better off, and that meagreness declined overall,” Werner said.

“Even though some individual people who lost their jobs may be subjected to been worse off, the net effect was still positive,” he said.

The majority of workers who would be affected by a $15 minimum wage are upon the age of 25, according to Werner. About one-third are the sole income earners for their families.

Workers who depend on the least wage are also much more likely to be people of color and living in poverty. Consequently, raising the minimum pay nationally inclination help vulnerable people, Werner said.

Raising minimum wages can also help increase consumer consumer and put money back into local economies, said Holly Sklar, CEO of Business for a Fair Minimum Wage, a nationalist network of business organizations, owners and executives that support higher minimum wages.

“Putting needed scratches in minimum wage workers’ pockets [is] really the most efficient way you can boost the economy,” Sklar said. “Those are the people who induce to go right back around and spend it.”

With federal action to raise the minimum wage uncertain, some big delegate companies have already stepped up to raise their pay rates.

Costco has raised its minimum wage for U.S. store craftsmen to $16 per hour, while Target, Amazon and have all moved to pay hourly workers $15 per hour.

As the economy has persisted to open up following the Covid shutdown, competition for workers has prompted employers to offer higher wages and starting honoraria for workers on the lower end of the income spectrum, Werner noted.

“It’s giving low-income workers more leverage than they had previously,” he said.