PA House passes bill to raise minimum wage to $11 by 2027, $15 by 2029, bill heads to Senate

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The Pennsylvania House of Representatives voted Tuesday to pass a bill that would raise the state’s minimum wage for the first time since 2009, moving the proposal to the Senate for further consideration.

House passes bill to raise minimum wage

What we know:

The House approved House Bill 2189 by a 104-95 vote, according to a press release from State Rep. Jason Dawkins. 

The bill would raise the minimum wage from $7.25 per hour to $11 per hour starting Jan. 1, 2027, then to $13 in 2028, and $15 in 2029. 

After that, annual cost-of-living adjustments would apply.

The bill also gives counties the option to move to a $15 minimum wage sooner and sets the minimum for tipped workers at 60% of the regular minimum wage.

The last time Pennsylvania raised its minimum wage was in 2009, when the federal minimum wage increased to $7.25 per hour. Since then, all neighboring states have raised their wages, while Pennsylvania’s rate has stayed the same.

Rep. Dawkins said, "It’s been my mission to provide a living wage for all working Pennsylvanians, and this bill passing the House is a huge step forward in that mission."

Governor Shapiro’s push for higher wages

The backstory:

Gov. Josh Shapiro has called for a $15 minimum wage every year since taking office, according to a press release from the Governor’s Office. 

The House has now passed minimum wage legislation three times, but the Senate has not acted.

"For more than 15 years, Pennsylvania’s minimum wage has been stuck at $7.25 an hour, falling further behind the cost of living and leaving hundreds of thousands of families struggling to make ends meet," said Shapiro. "We need to raise the minimum wage so Pennsylvanians have a real shot at getting ahead. The House has answered the call and passed legislation to raise the minimum wage three separate times – now it’s time for the Senate to follow their lead and get this done."

More than 500,000 Pennsylvanians currently earn less than $15 an hour, and the purchasing power of the minimum wage has dropped by more than 30% since 2009, according to the Governor’s Office.

Supporters say raising the minimum wage would boost consumer spending, reduce turnover, improve health and economic stability for workers, and save taxpayers money by reducing Medicaid spending.

The bill now moves to the Senate, where its future is uncertain. Dawkins said, "To my colleagues in the Senate, I implore you to take up this bill and finally raise the wage in Pennsylvania."

What’s next for the minimum wage bill

What's next:

The Senate must now decide whether to take up House Bill 2189. If passed, the bill would go to Gov. Shapiro for his signature.

If the Senate does not act, Pennsylvania’s minimum wage will remain at $7.25 per hour, as it has for the past 17 years.

The debate over raising the minimum wage is expected to continue as lawmakers weigh the economic and budget impacts.

What we don't know:

It is not yet clear when or if the Senate will vote on House Bill 2189, or whether any changes will be made to the proposal before it could become law.

The Source:  Information from press releases by State Rep. Jason Dawkins and the Office of Gov. Josh Shapiro.

NewsEconomy