Florida minimum wage earners are getting a raise, but still won't earn a living wage
Florida’s minimum wage is set to increase to $12 an hour on Sept. 30 as it continues to inch closer and closer to the $15 an hour rate Floridians approved in November 2020.
Floridians voted to raise the state’s minimum wage a dollar each September until it hits that $15 cap, but inflation caused by the COVID-19 pandemic has already significantly diminished the impact of the move.
The minimum wage for tipped employees will jump to $8.97 an hour. The federal minimum wage is $7.25 by comparison.
The minimum wage in the state was $8.56 when voters approved changes and this month’s jump to $12 an hour is equal to about $10.17 when adjusted for inflation, according to the U.S. Bureau of Labor Statistics.
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Florida made headlines in July when it was reported that the state had the highest inflation rate in the country at 9%, more than double the national average of 4%, according to the Consumer Price Index.
Workers making minimum wage in Florida will make about $24,960 per year when it increases, which is nearly $12,000 less than a single person needs to make to earn a living wage in the state, according to the Massachusetts Institute of Technology’s (MIT) living wage calculator.
Having a child increases the cost of living to a staggering $74,838, which is $13,000 more than Florida’s median household income in 2021.
Here’s what to know about Florida’s minimum wage.
What is Florida's minimum wage?
Florida's minimum wage is currently $11 an hour for non-tipped employees and $7.98 an hour for tipped employees. Both of these will continue to increase by $1 until 2026.
What will your extra dollar get you? Minimum wage in Florida goes up $1 per hour starting Saturday, Sept. 1. What will that buy you?
When is Florida's minimum wage rising?
The minimum wage rates for both tipped and non-tipped employees will rise on Sept. 30 each year until 2026.
What is the living wage in Florida in 2023?
The living wage in Florida for a single person comes out to $17.72 per hour, or an approximately $36,857.60 per year salary, according to MIT’s living wage calculator.
Having a child increases the cost of living to a staggering $74,838, which is $13,000 more than Florida’s median household income in 2021.
The living wage attempts to calculate how much a person needs to be paid an hour to pay for necessities where they live. Factors for the living wage include costs for housing, childcare, health care, food and more which makes it more likely to vary by state or city.
What is the poverty wage in Florida?
Florida’s poverty wage is $6.53 per hour for a single person and $8.80 for a person with a child, which is $13,582 and $18,304 per year, respectively.
How much does the average Floridian pay in monthly expenses?
MIT’s living calculator takes a person’s typical expenses for the year to calculate its living wage estimate. These numbers can vary by family size, composition and location, but here’s a look at the average Florida resident’s monthly expenses
Food: $327.17
Child care: $0
Medical: $265.33
Housing: $1,018.42
Transportation: $456.42
Civic: $256.17
Other: $354.17
Annual taxes (divided into monthly payments): $381.75
Here’s a look at the average Floridian’s monthly expenses with a child:
Food: $482.92
Child care: $804.67
Medical: $765.83
Housing: $1383
Transportation: $1,003.75
Civic: $508.92
Other: $618.33
Annual taxes (divided into monthly payments): $841.75
Civic expenses, according to MIT, include things such as fees and admissions, audio and visual equipment services, pets, toys, hobbies, reading, education and more.
This article originally appeared on Pensacola News Journal: Florida minimum wage to increase on Saturday. Here's what to know
