An individual holds an indication at a rally to boost the federal minimal wage, on Capitol Hill in Washington, D.C., on May 4.

Jim Watson/AFP through Getty Images

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Jim Watson/AFP through Getty Images

An individual holds an indication at a rally to boost the federal minimal wage, on Capitol Hill in Washington, D.C., on May 4.

Jim Watson/AFP through Getty Images

Minimum-wage employees in 22 states are going to see more cash of their paychecks within the new yr.

Those will increase will have an effect on an estimated 9.9 million employees, according to the Economic Policy Institute (EPI), which estimates that these bumped wages will add as much as an extra $6.95 billion in pay.

In addition to these 22 states, 38 cities and counties may also improve their minimal wages above state minimums on Jan. 1.

According to the Department of Labor, 20 states will preserve the federal minimal wage of $7.25 an hour.

And in accordance with EPI, of the 17.6 million employees incomes lower than $15 an hour, practically half stay in these 20 states that proceed to stay to the federal minimal wage — which has not changed since 2009.

The value of dwelling, nevertheless, has skyrocketed.

According to the Bureau of Labor Statistics shopper worth index, a greenback in 2023 should purchase roughly 70% of what it may purchase in 2009.

And over the previous yr, inflation, and the rising value of just about every thing — from housing to groceries — has pressured many Americans to deplete their financial savings and go deeper into debt.

While the U.S. financial system is proving to be robust by way of retail gross sales, sturdy job numbers and a slowing fee of inflation, those that earn minimal wage have had a more durable time paying rent, and shopping for important family items, including groceries.

According to EPI information, practically 58% of employees who will profit from the approaching wage improve are ladies. Nine p.c are Black and practically 38% are Hispanic.

Over 1 / 4 of those that will profit from the pay will increase are mother and father, which may make a big distinction of their requirements of dwelling, given that just about 20% of the benefitting minimal wage employees at present have incomes beneath the poverty line.

Most lately, Senate Democrats launched the Raise the Wage Act of 2023 in July. If handed, it could regularly improve the federal minimal wage to $17 an hour by 2028.