Minimum wage set to rise by 11 cents |

Minimum wage set to rise by 11 cents

Most Colorado minimum-wage workers will see an increase of 11 cents an hour next year to $7.36, based on a small increase in the inflation rate.

The increase is meant to keep the real spending power of minimum-wage earners on pace with inflation – the general price movement of goods and services.

Last year, Colorado’s minimum wage was cut from $7.28 an hour to $7.24 because of a drop in inflation. But most employers had to meet the federal minimum wage, which was $7.25 an hour, thus the 11-cent increase.

This year, inflation was 1.7 percent in Colorado, according to the Bell Policy Center in Denver.

Colorado voters approved indexing the minimum wage to the inflation rate by passing Amendment 42 in 2006. State inflation rates are calculated annually based on data from the Denver-Boulder-Greeley consumer price index.

With the increase that starts Saturday, minimum wages for tipped workers will jump to $4.34.

“It’s something that really does help the lowest wage earners over time,” said Rich Jones, director of policy research at the Bell Policy Center.

Additional income would amount to $230 over the year for full-time minimum-wage earners. In addition, the increases will allow extra spending that will spur more economic activity, Jones said.

Read more: Minimum wage set to rise by 11 cents – The Denver Post

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