After a lengthy 15-year battle for increases, the Pennsylvania House has successfully passed a bill aimed at raising the state’s minimum wage.
The legislation, adopting a gradual strategy for increasing the wage, was approved with a narrow party line vote of 102-101. The future of the bill in the Republican-led Senate is uncertain.
The legislation aims to incrementally increase the minimum wage in densely populated regions, such as Philadelphia and Allegheny Counties, to $15 per hour, while setting the minimum at $12 per hour in other areas. Starting January 1st of the upcoming year, Philadelphia County will experience a rate change, while other counties are set to witness an increase extending through 2028.
Starting in 2029, the minimum wage is set to increase each year, linked to the cost of living, aiming to avoid the stagnation experienced over the last fifteen years due to a lack of legislative action. The proposal aims to elevate the minimum wage for tipped workers to 60% of the state’s baseline wage.
In a significant show of support, legislators and union members gathered last month to advocate for a raise.
“We need to send a message in this Commonwealth that all work has dignity,” said Lt. Gov. Austin Davis. “I know what it’s like to come from a working class family to come from a working class community, and we need to say now is the time more than ever to give them a raise to make sure that they can afford the basic necessities.”
GOP claims the legislation was expedited. Critics of the wage increase argue that it could lead to the shutdown of small businesses unable to meet the higher payroll demands. It has been revealed that a limited number of individuals actually earn the minimum wage, primarily consisting of workers such as servers who enhance their income through tips.
The existing minimum wage aligns with the federal standard of $7.25 an hour. This figure falls below that of all states surrounding Pennsylvania and is less than 50% of what is seen in neighboring Maryland, New Jersey, Delaware, and New York. A crucial matter in a state keen to attract additional workers to address its demographic changes.
In April, Senator Bernie Sanders from Vermont introduced a bill aimed at raising the national wage to $17 per hour by the year 2030. Pennsylvania’s minimum wage was last adjusted during a nationwide increase, resulting in its current rate.
