HARRISONBURG, Va. (WHSV) – The minimum wage in Virginia is set to increase on Jan. 1, 2025, rising from the current hourly wage of $12 to $12.41 per hour.
The Minimum Wage Act in Virginia was passed in 2020, which gradually increases the minimum wage in response to inflation. In 2021, the minimum wage increased from $7.25 to $9.50 an hour. The latest increase in 2023 took the minimum wage from $11 an hour to $12 an hour.
In December 2023, the U.S. Bureau of Labor Statistics published an annual increase in CPI-U (Consumer Price Index for All Urban Consumers) of 3.4%. Effectually, the non-discretionary formula for adjusting the Virginia minimum wage rate is $12.00 + ($12.00 x .034). This calculation equals $12.41. Annual adjustments to the Virginia minimum wage rate will continue in the future with the same method.
At the end of March 2024, Virginia Gov. Glenn Youngkin vetoed a bill that would have increased minimum wage to $13.50 an hour in 2025, and $15.00 by 2026. Youngkin stated in his veto that “a one-size-fits-all mandate ignores the vast economic and geographic differences and undermines the ability to adapt to regional cost-of-living differences and market dynamics.”
According to the federal guidelines, the poverty level is $15,060 for a one-person household and $31,200 for a 4-person household.
According to the latest census, the median household income in Staunton was $62,586, and 12.6% of the population was considered to be living in poverty. Waynesboro has 11.7% and Augusta County 8.2% of their respective populations living in poverty. Augusta County had the highest median income in the SAW region with $79,972.
Youngkin recently announced a proposal that would eliminate taxes on tips. If the proposal passes, Youngkin said it will return around $70 million to the pockets of service workers each year.
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