Montgomery County Increases Minimum Wage to Combat Inflation

Montgomery County has implemented an increase in minimum wage rates effective July 1, aimed at keeping pace with rising inflation.

Under the new wage structure, businesses employing 10 or fewer individuals must now pay a minimum of $15.95 per hour, reflecting a 45-cent increase. Employers with 11 to 50 employees will be required to pay at least $16.50, which is a 50-cent rise, while those with over 50 employees must offer a minimum of $18 per hour, a 35-cent increase.

County Executive Marc Elrich emphasized the importance of this adjustment, stating, "This minimum wage adjustment reflects our commitment to building an economy that works for everyone. When wages keep pace with inflation, working people aren’t forced to fall behind as everyday costs rise."

According to county data, workers earning minimum wage and working 40 hours a week will see an annual income increase of $936 in smaller businesses, $1,040 in mid-sized businesses, and $728 in larger companies.

This wage adjustment follows legislation passed by the County Council in 2017, which mandates the recalculation of minimum wage every March 1 based on the region's inflation rate. The law also stipulates annual adjustments for small and mid-sized businesses until a uniform minimum wage is established across all employers.

In addition to Montgomery County, Howard County will also see a minimum wage increase on July 1, as part of a 2021 law that requires all employers to reach a minimum of $16 per hour by 2026.

Reported by HarborBeat based on The Baltimore Banner (source).