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The Raise the Wage Act of 2021 would help eliminate poverty-level wages by raising the national minimum wage to $15 per hour by 2025. This report finds that the raise is long overdue and would deliver broad benefits to workers and the economy.
The current federal minimum wage is $7.25 per hour and has not been raised in over 10 years. A full-time federal minimum wage worker today earns 18% less than what her counterpart earned at the time of the last increase, after adjusting for rising costs of living ($15,080 annually in 2021 versus $18,458 in 2009).
In 1968, a minimum wage worker earned $10.59 per hour in inflation-adjusted terms, 46% more than today’s $7.25 federal minimum wage. The minimum wage today would be over $22 per hour had it tracked productivity increases over the last five decades.
The Raise the Wage Act of 2021, which phases in a $15 minimum wage by 2025, would raise the earnings of 32 million workers, or 21% of the workforce. Affected workers include those who would see their wages rise as the new minimum wage rate exceeds their current hourly pay and those who have a wage rate just above the new minimum wage who would receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage.
$15 minimum wage by 2025 would raise the wages of at least 19 million essential and front-line workers. Essential and front-line workers constitute more than 60% of all workers who would see a pay increase.
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