dailyloe.com – A new bill aims to raise the federal minimum wage to $25 an hour over the next five years. A group of 25 Democratic lawmakers filed the bill in Congress this week. Currently, the federal minimum wage stands at $7.25 an hour.
The proposed legislation, known as the Living Wage for All Act, would gradually increase the minimum wage. It starts at $12 an hour this year and increases by $2 to $3 each year until reaching $25 in 2031.
The bill intends to reflect the cost of living nationwide. The states in green on a map recently released by a data team show statewide minimum wage increases this year. Currently, 20 states have minimum wages set at or below the federal rate.
Upon introduction, the bill was referred to the House Committee on Education and Workforce for consideration. This is the first step in the legislative process.
If passed, the legislation would require companies with more than 500 employees to increase wages gradually to $25 an hour by 2031. Smaller employers would have until 2038 to meet the same wage level.
The bill also aims to keep the minimum wage aligned with typical wages across the economy. The last federal minimum wage increase occurred in 2009, with several states and cities raising their minimum wages independently since then.
Currently, 30 states have minimum wages above the federal minimum wage. The bill’s introduction reflects ongoing discussions about wage increases in the face of rising living costs.
