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In response to inflation, California is increasing its minimum wage again next year, from the current $16.90/hour to $17.40/hour as of January 1, 2027.
The State’s Director of Finance confirmed this increase in a July 31 letter to Governor Newsom. As explained, the 50-cent increase is due to a 2.99% increase in the national Consumer Price Index for urban wage earners, or CPI-W. (California’s minimum wage is adjusted annually based on the CPI-W increase, up to a maximum of 3.5%.)
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