Virginia’s minimum wage is on track to continue increasing over the next two years.
Two companion bills — SB1 and HB1 — have passed both chambers and are expected to go to Gov. Abigail Spanberger (D), who has indicated that she will sign them into law.
The legislation would codify the current $12.77-per-hour minimum wage, which increased from $12.41 on Jan. 1. The minimum wage would increase again to $13.75 per hour at the start of 2027 and $15 per hour in 2028.
Additional increases beyond 2028 would be set by Virginia’s commissioner of labor based on inflation.
“Across our Commonwealth, I’ve heard from Virginia families who are stretching their paychecks more than ever but still coming up short at the end of each month,” Spanberger said in a news release yesterday (Monday). “I’ve heard from Virginians who have had to choose between refilling their prescriptions, heating their homes, or keeping up with their rent or mortgage — all the while worrying about saving for their kids’ futures.”
Senate President Pro Tempore Louise Lucas (D-18), who sponsored the Senate bill, said that aligning future increases with inflation will help ensure that Virginia wages don’t fall behind the cost of living.
“SB 1 makes it clear: we value work, and we’re going to pay for it,” Lucas said in a statement. “This bill provides a clear path to $15 an hour, giving Virginians the raise they deserve while giving businesses time to plan.”
Through past legislation, Virginia has incrementally raised the minimum wage from the federal threshold of $7.25 per hour since 2021. Thirty states and D.C. have increased the minimum wage beyond the federal minimum wage, which was last increased in 2009. Virginia is among 19 states and D.C. that have implemented automatic increases based on the consumer price index.
Efforts to fast-track a $15 minimum wage hit roadblocks under former Gov. Glenn Youngkin (R), who vetoed similar legislation multiple times. The Employment Policies Institute, an Arlington-based fiscally conservative think tank, has also pointed to its research indicating that the cost of living tends to increase in states with minimum wage hikes.
“The research is clear: Minimum wage hikes slash jobs and hours for workers, and make inflation worse for working families,” Rebekah Paxton, EPI’s research director, said. “The Commonwealth won’t be immune. At a time when Virginians are struggling to afford basic necessities, this proposal is a solution that will only cause more harm to residents’ pocketbooks.”
By contrast, the Economic Policy Institute, a left-leaning think tank, argues that rising costs of living justify wage increases to promote more spending power and stability for minimum wage workers. The organization said its research showed minimal to no job losses from minimum wage hikes.
The Massachusetts Institute of Technology’s living wage calculator pegs the living wage for a Virginia resident with no children at $25.72 per hour, and the poverty wage at $7.67. In Arlington, meanwhile, MIT estimates the living wage for an adult with no kids is $30.26 per hour, while for a dual-income household with two kids, it’s $44.27 per hour.
Virginia’s minimum wage law has exceptions for workers under 16, employees with disabilities covered by a subminimum wage, salespeople working on commission and other situations. Tipped employees receive an hourly wage rate below the minimum, depending on the amount of tips they receive.
