July 10, 2006
Pennsylvania Increases Minimum Wage to $7.15 an Hour
Pennsylavania Gov. Ed Rendell yesterday signed legislation increasing the state's minimum wage by $2 per hour, a change that will be phased in over the next two years.
The minimum wage will rise to $6.25 an hour on Jan. 1, 2007, then to $7.15 an hour on July 1, 2007.
The increase will take effect more slowly for employers with the equivalent of 10 or fewer full-time employees, although franchises of larger chains will not qualify for that exemption. Employers that do qualify will pay $5.65 an hour beginning Jan. 1, 2007; $6.65 beginning July 1, 2007; and $7.15 on July 1, 2008.
The federal minimum wage has been locked in at $5.15 an hour for the past nine years, and is really valued at $4.75 an hour when adjusted for inflation. For minimum-wage earners who work full time, making just $5.15 an hour comes out to be $10,712 a year. That’s several thousands below the 2004 federal poverty guidelines for a household of two ($12,490) or three ($15,670). And for about 40 percent of minimum-wage workers in the U.S., these wages are the sole source of their family income. It’s also important to know that the majority of workers who earn minimum wage aren’t teenagers needing extra spending money—over 70 percent are adults and 60 percent are women.
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