Washington state minimum wage to increase in 2023 & here’s what to know

If you or someone you know is currently working a minimum wage job, we have some good news for you, a raise is on its way! The Washington State Department of Labor and Industries has calculated the new 2023 wage using the federal Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers. Let’s get into what that means for Washingtonians.

As we all know, 2022 has been a year for the books with all of us experiencing the effects of inflation, labor shortages and supply chain issues. As such, life has become more expensive leading the Washington State Department of Labor and Industries to calculate an 8.66% rise. This “is directly linked to the cost of common goods such as housing, food, and medical care as reflected in the Consumer Price Index.”

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How much is wage increasing? Washington minimum wage is going up to $15.74 an hour from 2022’s wage of $14.49 per hour. The change is effective January 1st, 2023 and it’s also worth noting these specificities.

“The state minimum wage applies to workers age 16 and older. Under state law, employers can pay 85% of the minimum wage to workers ages 14-15. For 2023, the wage for that younger group will be $13.38 per hour. Cities can set minimum wages higher than the state. Seattle and SeaTac both have higher wages.”

When it comes to Seattle, minimum wage will increase to $16.50-$18.69 per hour depending on the employer. The current minimum wage in Seattle is $15.75, and for large employers it is $17.27.

The increase in minimum wage also applies to those working for ride share companies like Uber and Lyft. There’s also a few specificities for this increase that you should know.

“For trips within Seattle in 2023, drivers will earn 64 cents per passenger minute and $1.50 per passenger mile, or $5.62, whichever is greater. For trips outside of Seattle in 2023, drivers will earn 37 cents per passenger minute and $1.27 per passenger mile, or $3.26, whichever is greater. The law requires L&I to update the minimum trip compensation rate each September using the CPI-W.”

Hey, at the end of the day, we’ll take an extra $1.25 an hour. If you’d like to read the full report on Washington minimum wage you can visit the Washington State Department of Labor & Industries website.