Minimum wages set to increase in 2027: $17.40 an hour

Published July 31, 2026 2:34 PM PDT

California’s minimum wage workers will, in January of next year, get a 50-cent raise, Governor Gavin Newsom announced on Friday.

The increase will make California’s minimum wage — currently $16.90 — the highest in the nation, and nearly 2.5 times higher than the federal minimum wage, which has been frozen at $7.25 since 2009.

"For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations," Newsom said in a press release. "California has chosen a different path — one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t."

The backstory:

Newsom has increased the minimum wage multiple times since he first took office in 2019, when California’s minimum wage was $12. During his time in office, fast food workers and health care workers have also seen their wages go up to $20 and $25 an hour respectively.

The minimum wage increase is automatic under California law, which adjusts the statewide minimum wage each year to keep pace with inflation.

The Source: Gavin Newsom's office

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