A new federal proposal introduced in the US Congress could raise the national minimum wage to $25 (around £18) an hour under a phased plan that would see large employers comply by 2031 and smaller businesses by 2038, marking the most significant potential wage overhaul since 2009.
The Living Wage for All Act, introduced by Democratic lawmakers on Tuesday and referred to the House Committee on Education and the Workforce, aims to address rising living costs and wage stagnation affecting millions of American workers across the United States.
TheLiving Wage for All Actproposes a gradual increase of the federal minimum wage from its current $7.25 (£5.34) an hour to $25 an hour. If enacted, the legislation would apply to employers nationwide, setting a uniform baseline for pay across the US labour market.
The federal minimum wage has remained unchanged since 2009, despite significant increases in living costs, housing expenses, and healthcare spending over the same period. The proposed reform would mark the first federal adjustment in nearly two decades, although several states and cities already enforce higher local wage floors.
The bill introduces a staggered compliance structure based on company size. Employers with more than 500 workers would be required to gradually increase wages until reaching $25 an hour by 2031.
Smaller employers, defined as businesses with fewer than 500 employees, would be given a longer adjustment period. These firms would be expected to phase in increases more slowly, with full compliance required by 2038.
This tiered system is designed to give smaller businesses additional time to adapt to rising labour costs while still aligning with the same national wage target.
Supporters of the federal minimum wage increase argue that the current wage floor no longer reflects economic reality in the United States. With inflation and living costs continuing to rise, lawmakers backing the bill say many workers are struggling to afford basic needs such as rent, groceries, and healthcare.
The legislation also includes provisions to keep the minimum wage aligned with typical wages across the economy, aiming to prevent long-term stagnation. Proponents say the change is intended to strengthen household income and improve financial stability for low-wage workers.
The Living Wage for All Act was introduced by Reps. Delia Ramirez, Chuy García, Lateefah Simon, and Analilia Mejia, all Democrats. The bill has been referred to the House Committee on Education and the Workforce for further consideration.
Source: International Business Times UK
