SAN FRANCISCO─The minimum wage rose to $15.59 per hour on Monday, July 1 in San Francisco.
All employees that perform work in the city and county of San Francisco must be paid no less than the minimum wage. The minimum wage increased by .59 cents in accordance to Section 12R.4 of the San Francisco Administrative Code. In the past, the minimum wage increased to a set amount every year. In 2015, the hourly rate was $12.25 and rose to $13.00 per hour the following year. However, the ordinance states that beginning on July 1, 2019, “The minimum wage rate will be adjusted based on the annual increase in the Consumer Price Index.”
The Consumer Price Index (CPI) measures the weighted average of the price of goods or services including food, shelter, and transportation. As reported in April 2019, food prices increased by 4.3 percent and energy prices increased by 6.8 percent over the year. In all other categories, prices increased by 3.8 percent.
In comparison, San Francisco’s hourly minimum wage is 20 percent higher than California. The state law requires a business with 25 employees or more to pay $12.00 per hour.
This makes San Francisco one of the highest paying cities in the country behind Mountainview and other Bay Area cities. Emeryville will increase its minimum wage to $16.30 per hour.