This week Vermont Governor Peter Shumlin signed into law legislation phasing in increases in the state’s minimum wage rate from the current $8.73 per hour to $10.50 per hour by 2018. The change is a much needed boost for minimum wage workers. Until now, Vermont’s minimum wage was tied to the Consumer Price Index and increased a small percentage each year. Beginning January 1, 2015, the minimum wage rate will increase in increments to a fixed amount before being indexed once again to inflation staring January 1, 2019.
The scheduled minimum wage rate increases are:
- Jan. 1, 2015 – $9.15 per hour
- Jan. 1, 2016 – $9.60 per hour
- Jan. 1, 2017 – $10.00 per hour
- Jan. 1, 2018 – $10.50 per hour
- Jan. 1 subsequent years – indexed to inflation
- Jan. 1, 2015 – Tipped employees at least one-half the minimum wage rate
This year low wage workers across the county have been rallying for higher minimum wage rates. President Obama has also expressed his support of increased minimum wages. Already, many states have planned or proposed minimum wage rate increases starting this year and next January. So far, Vermont has established the highest state minimum wage rate.