Workers in San Diego will see a modest pay increase as the city implements a new minimum wage starting January 1.
The hourly rate for minimum wage workers within city limits will rise from $16.85 to $17.25, reflecting an increase of nearly 50 cents. This adjustment is part of a 2016 ordinance aimed at aligning San Diego’s wage laws with state-level changes that set California on a path to a $15 minimum wage by 2022.
“This milestone reflects years of hard work and advocacy to put more money directly into the pockets of hardworking San Diegans,” San Diego Mayor Todd Gloria said in a release. “By raising the minimum wage, we are helping working families deal with the rising cost of living and better make ends meet.”
After reaching the $15 benchmark, both the state and city began making annual adjustments tied to the national Consumer Price Index (CPI). While California caps these yearly increases at 3.5%, San Diego’s ordinance allows for unrestricted adjustments, enabling its minimum wage to outpace the state’s.
However, not all workers will be affected by this change. Those in industries governed by specific state minimum wage laws, such as fast food, or individuals already earning above the baseline, will not see an impact. Additionally, workers outside the city’s boundaries are excluded from this increase.
San Diego’s wage hike comes just months after California voters narrowly rejected a proposal to raise the statewide minimum wage to $18 by 2025. Depending on future shifts in the CPI, San Diego’s minimum wage could reach $18 as early as 2026 or 2027.
