Federal gov send new minimum wage structure to states
You're referring to the recent development in the United States!
On April 27, 2021, the Biden administration announced a new minimum wage structure, which would gradually increase the federal minimum wage to $15 per hour by 2025. This proposal was sent to Congress as part of the American Rescue Plan Act, a COVID-19 relief package.
Here are the key details:
- Phase-in period: The minimum wage would increase gradually over the next four years, reaching $15 per hour by 2025.
- 2021: The minimum wage would increase to $9.50 per hour.
- 2022: The minimum wage would increase to $10.50 per hour.
- 2023: The minimum wage would increase to $11.50 per hour.
- 2024: The minimum wage would increase to $12.50 per hour.
- 2025: The minimum wage would reach $15 per hour.
The proposal also includes a provision that would index the minimum wage to inflation, ensuring that it keeps pace with the rising cost of living.
It's worth noting that this proposal is not a binding law, but rather a recommendation to Congress. The final decision on the minimum wage structure will depend on the outcome of the legislative process.
The move to increase the minimum wage has been met with both support and criticism. Some argue that a higher minimum wage would help reduce poverty and income inequality, while others argue that it could lead to job losses and increased costs for businesses.
What are your thoughts on the proposed minimum wage structure?