President Biden To Raise Minimum Wage For Federal Contract Workers To $15

By Jason Hall

April 27, 2021

President Joe Biden will sign an executive order on Tuesday (April 27) to increase minimum wage to $15 per hour for individuals working on federal contracts.

ABC News reports all federal agencies will need to implement the $15 minimum wage contracts by March 30, 2022 in adherence with the executive order.

The current minimum wage for federal contract workers is $10.95, having been raised to $10.10 under former President Barack Obama and later indexed due to inflation.

Many federal contract workers already make more than the current set minimum wage, but the executive order will provide a boost to lower-wage workers including cleaning and maintenance professionals, food service employees working on military bases and government buildings and nursing assistants working with U.S. veterans.

The White House did not provide an exact number on how many individuals would be eligible for a raise due to Tuesday's executive order as federal contracts change constantly.

The Biden administration said the raise of federal minimum wage would not cost taxpayers, with an official citing a Harvard University study to claim paying a competitive wage will ensure reduced turnover, absenteeism, training and supervisory costs, as well as lower recruitment, all playing a role in increasing productivity, cutting costs and ultimately costing no increased costs for U.S. taxpayers, ABC News reports.

The official also said President Biden's Council of Economic Advisors concluded that the raise in minimum wage for individuals working on federal contracts wouldn't create any job loss after reviewing Thursday's executive order.

Photo: Getty Images

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