San Francisco’s Minimum Wage Rises To $16.32 Per Hour (July 1)

Effective July 1, 2021 the minimum wage for all workers in the City and County of San Francisco will increase to $16.32 per hour.

San Francisco has a long history of supporting workers’ rights. In 2003, San Francisco became the first local jurisdiction to enact a minimum wage higher than the federal or state minimum wage rates for all employers. The ordinance tied the minimum wage to the Consumer Price Index (CPI) to ensure workers’ wages keep up with inflation.

In 2014, San Francisco voters overwhelmingly approved a proposal to raise the minimum wage to $15.00 per hour. The new legislation also included annual CPI increases.

“After a year that highlighted how much we all rely on essential workers, San Francisco knows that business stability and worker protections are not mutually exclusive. A great city must treat workers fairly and equitably,” said Patrick Mulligan, Director of the San Francisco Office of Labor Standards Enforcement, emphasizing the importance of the July 1, 2021 increase. 

Over time, the annual CPI increases ensure that the value of workers’ wages are not eroded by inflation. Bala Mohamed Shehzad, who earns minimum wage at the Winston Arms Hotel in the Tenderloin said, “I am very excited, and it will help my standard of living. I appreciate that I can expect an increase every year and that the City protects my right to fair wages.”

The increase comes as unemployment in San Francisco falls from pandemic highs of 13% in April 2020 to 5.1% in May 2021 and as pandemic unemployment assistance is scheduled to sunset in September.

The current federal minimum wage is $7.25 per hour – and has remained unchanged since 2009. The California minimum wage is currently $14.00 per hour for employers with 26 or more employees and $13.00 per hour for employers with 25 or fewer employees.

To learn more about San Francisco Minimum Wage Ordinance, visit https://sfgov.org/olse