10 states set for minimum wage hike

But the expiring payroll tax cut could wipe out the meagre gains

Topics: Payroll tax, Minimum wage, Fiscal cliff, Taxes, States, San Francisco, ,

10 states set for minimum wage hike San Francisco has the country's highest minimum wage (Credit: via Wikipedia)

Minimum wage workers in 10 states will get raise in 2013, CNN reports.

Employees in Rhode Island will see the biggest gains as the state voted to raise the minimum 35 cents per hour to $7.75. This translates into a bump of about $510 per year for the average worker. Nine other state minimums are climbing automatically as the result of laws that peg the minimum wage to increases in the cost of living.

CNN:

An estimated 855,000 workers will be directly affected by the wage changes, while another 140,000 are projected to be indirectly affected by the changes as employers readjust their pay scales to accommodate the new minimum, according to analysis by the Economic Policy Institute.

The new hourly rates will range between $7.35 in Missouri and $9.19 in Washington state, which has the highest minimum wage in the nation.

Workers may not notice much of a change in their paychecks, though, if lawmakers do not extend the payroll tax cut first enacted in 2010. Without the tax cut in place, workers would pay 6.2% instead of 4.2% — an amount that could wipe out most of the wage boost.

According to National Employment Law Project (NELP) statistics cited in the article, the minimum wage is an increasingly relevant figure in the country’s economic life



“The majority of jobs created during the economic recovery have been low-wage positions that pay $13.83 an hour or less,” according to an August NELP report. The group also found that “72 percent of the employees set to be affected by the wage increases are adults 20 years or older.”

KQED reports that San Francisco is raising the local minimum wage to $10.55 an hour, the highest in the country for the notoriously expensive city.

Alex Halperin is news editor at Salon. You can follow him on Twitter @alexhalperin.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 11
  • Close
  • Fullscreen
  • Thumbnails
    Rose Jay via Shutterstock

    Most popular dog breeds in America

    Labrador Retriever

    These guys are happy because their little brains literally can't grasp the concept of global warming.

    Hysteria via Shutterstock

    Most popular dog breeds in America

    German Shepherd

    This momma is happy to bring her little guy into the world, because she doesn't know that one day they'll both be dead.

    Christian Mueller via Shutterstock

    Most popular dog breeds in America

    Golden Retriever

    I bet these guys wouldn't be having so much fun if they knew the sun was going to explode one day.

    WilleeCole Photography via Shutterstock

    Most popular dog breeds in America

    Bulldog

    This dude thinks he's tough, but only because nobody ever told him about ISIS.

    Soloviova Liudmyla via Shutterstock

    Most popular dog breeds in America

    Beagle

    This little lady is dreaming about her next meal-- not Sudden Infant Death Syndrome.

    Labrador Photo Video via Shutterstock

    Most popular dog breeds in America

    Yorkshire Terrier

    This trusting yorkie has never even heard the name "Bernie Madoff."

    Pavla via Shutterstock

    Most popular dog breeds in America

    Poodle

    She is smiling so widely because she is too stupid to understand what the Holocaust was.

    Aneta Pics via Shutterstock

    Most popular dog breeds in America

    Boxer

    Sure, frolic now, man. One day you're going to be euthanized and so is everyone you love.

    Dezi via Shutterstock

    Most popular dog breeds in America

    French Bulldog

    He's on a casual afternoon stroll because he is unfamiliar with the concept of eternity.

    Jagodka via Shutterstock

    Most popular dog breeds in America

    Rottweiler

    Wouldn't it be nice if we could all be this care-free? But we can't because we are basically all indirectly responsible for slavery.

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>