New York’s minimum wage could increase to $17 by 2026

New York City’s workers may soon be entitled to an extra $2 per hour, thanks to a minimum wage increase included in New York State’s new budget proposal. 

“I support raising the minimum wage along the lines that we’re talking about,” Governor Kathy Hochul said at the State Capitol last week.

The proposal by the state senators suggests raising New York City’s current minimum wage of $15 to $16 per hour in the city, Long Island and Westchester County, implementable by January 1, 2024. From there, the minimum wage in these areas would increase by 50 cents in 2025 and eventually reach $17 with another 50-cent increase in 2026. And who knows what inflation will look like by then? 

Already, an estimated 2.9 million New Yorkers live on minimum wages and New York has been found to have the largest gap in income inequality in the United States.

New York State’s minimum wage has stayed stagnant at $15 since 2019, which doesn’t fare well for city dwellers dealing with inflation.

A report from New York City’s comptroller shows that $15 four years ago equates to just $12.85 in 2023, meaning minimum wage is worth less than it was when the rate started. A $2 increase will merely close the gap due to inflation and cost of living increases, rather than make minimum wage labor more valuable. In fact, with the current 4.25% level of inflation, today’s $17 is approximately equivalent to $14.39 in 2019. 

“This puts New York behind Flagstaff, Arizona,” tweeted State Senator Jessica Ramos, a Queens Democrat pushing for a $21.25 minimum wage.

Others took to Twitter to voice their disappointment:

Our response to @GovKathyHochul‘s disappointing budget that only raises New York State’s #minimumwage to $17 by 2028, not the $21.25 wage that Legal Momentum and countless other advocacy groups fought for.#RaiseUpNY #RaisetheWage pic.twitter.com/VKOtMVc73r

— Legal Momentum (@LegalMomentum) May 2, 2023

Minimum wage at $17 is affordable? She’s buggin. https://t.co/GF1HguHqZp

— Jessica Ramos (@jessicaramos) April 29, 2023

The Governor announced a conceptual budget agreement for New York State’s FY 2024 budget that is both late—and underwhelming.

The budget as it stands fails to address housing affordability, raises the minimum wage by far less than inflation, and still treats the City unfairly.

— Comptroller Brad Lander (@NYCComptroller) April 28, 2023

Republicans also voiced frustration with the proposed increases, claiming a mandatory wage increase would lead to job loss. 

With half of New Yorkers currently unable to afford the basic cost of living to subsist in New York City, will this proposed $2 increase be enough to sustain the economy?