US Raises Federal Contract Workers' Minimum Wage to $15 per Hour

President Joe Biden [Photo by Yonhap News]

The United States is raising the minimum hourly wage for federal contract workers from the current $10.95 (approximately 12,200 KRW) to $15 (approximately 16,700 KRW).

According to AFP on the 27th (local time), the White House announced that President Joe Biden is scheduled to sign an executive order with this content on the same day.

The executive order applies to private individuals contracted by the government, not civil servants.

The current minimum hourly wage for contract federal workers is $10.95.

President Biden had proposed as a campaign pledge to raise the minimum wage for all workers nationwide from the current $7.65 (approximately 8,500 KRW) to $15 by 2025.

The increased wage will apply to new contracts starting March 30 of next year and will later be extended to renewed existing contracts.

The White House explained, "Under this executive order, companies contracted by the federal government will have to pay tens of thousands of workers a minimum wage of $15."

It added, "Workers engaged in various fields such as cleaning, maintenance, nursing assistance, and food services are essential to federal government operations."

Until now, some contract workers received lower wages than others and made up the difference with tips. This executive order also includes unifying the minimum wage for all contract workers, including these individuals.

This content was produced with the assistance of AI translation services.