Wage impacts of increasing the minimum wage under the Raise the Wage Act of 2019, 2019–2024 (2018$)
| Directly affected workers | All (directly & indirectly) affected workers | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Date | New minimum wage (nominal $) | New minimum wage 2018$) | New tipped minimum wage (nominal $) | New tipped minimum wage 2018$) | Total wage increase (thousands) | Change in avg. hourly wage | Change in avg. annual income (year-round workers) | Real percent change in avg. annual income | Total wage increase (thousands) | Change in avg. hourly wage | Change in avg. annual earnings (year-round workers) | Real percent change in avg. annual earnings |
| July 2019 | $8.55 | $8.35 | $3.60 | $3.52 | $3,110,218 | $0.76 | $1,080 | 9.9% | $5,327,000 | $0.46 | $700 | 4.8% |
| July 2020 | $9.85 | $9.39 | $5.10 | $4.86 | $10,795,424 | $1.01 | $1,470 | 11.4% | $14,723,132 | $0.62 | $940 | 5.9% |
| July 2021 | $11.15 | $10.37 | $6.60 | $6.14 | $25,628,622 | $1.21 | $1,820 | 12.0% | $30,162,310 | $0.91 | $1,400 | 8.1% |
| July 2022 | $12.45 | $11.30 | $8.10 | $7.35 | $48,383,312 | $1.69 | $2,630 | 16.2% | $53,675,376 | $1.26 | $1,980 | 10.6% |
| July 2023 | $13.75 | $12.18 | $9.60 | $8.50 | $76,943,540 | $2.19 | $3,480 | 20.2% | $84,224,367 | $1.55 | $2,490 | 12.5% |
| July 2024 | $15.00 | $12.98 | $11.10 | $9.60 | $109,348,838 | $2.40 | $3,890 | 20.9% | $117,967,152 | $1.83 | $2,970 | 14.0% |
Notes: Values reflect the result of the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI's Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115 percent of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage. Wage increase totals are cumulative of all preceding steps.
Source: Economic Policy Institute Minimum Wage Simulation Model using data from the Census Bureau, Bureau of Labor Statistics, and Congressional Budget Office. See Cooper, Mokhiber, and Zipperer 2019. Dollar values adjusted by projections for CPI-U in CBO 2018.
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