Democratic President Joe Biden in executive decree specified the minimum wage that companies with a contract with the federal government must pay their employees. The move will raise the current minimum wage of $ 10.95 by nearly 40 percent by March next year, and will continue to tie future increases to inflation. written by Napi.hu, citing a Reuters article.
It hasn’t changed since 2009.
The current move affects hundreds of thousands of American workers. From cleaners to catering contractors to maintenance workers; It increases the monthly earnings for all federal employees. White House officials insist that the current decision will not increase taxpayer costs because the benefits will offset the expenses, for example, due to increased worker productivity as well as increased consumption. Biden believed that stronger unions and higher wages could revive the American middle class.
Employers who have a contract with the federal government will be required to incorporate base pay into new contracts from 2022 onwards.
According to the regulation, the increase in the minimum wage is linked to inflation. It eliminates minimum wages paid for perks to employees such as seasonal entertainment providers, food service providers, or bus drivers. It guarantees a $ 15 hourly minimum rate for federal contractors with disabilities.
