New York Gov. Kathy Hochul and legislative leaders have agreed to a three-year plan to raise the minimum hourly wage before limiting future increases to the rate of inflation under a draft state budget deal revealed on Thursday.
The plan calls for the wage in New York City, Long Island, and Westchester County to reach $17 in 2026. Progressive legislators and groups are against the compromise, claiming it is too little. Gov. Hochul said it will be incorporated into the final budget bill, which lawmakers are anticipated to pass next week.
The current minimum wage in New York is $15 in Westchester County, Long Island, and New York City. In each of the next three years, that number would rise under the proposed budget agreement.
- 1 January 2024: $16 per hour
- 1 January 2025: $16.50 per hour
- 1 January 2026: $17 per hour
The remainder of the state, whose costs of living are typically lower, would trail behind by $1. This means that the present minimum wage of $14.20 per hour would rise to $15 in 2024, $15.50 in 2025, and $16 in 2026.
The minimum hourly wage would increase at the same pace as the Consumer Price Index for Urban Wage Earners and Clerical Workers – an index that tracks market prices of consumer goods to account for inflation – in 2027 and subsequent years. The cost-of-living adjustments for Social Security benefits will be based on the same index.
