by: Lily Dallow
Posted: Jul 31, 2026 / 09:07 AM PDT
Updated: Jul 31, 2026 / 09:07 AM PDT
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California workers will see another increase in the state’s minimum wage next year.
Gov. Gavin Newsom announced Friday that California’s statewide minimum wage will increase beginning Jan. 1, 2027, under the state’s annual inflation adjustment.
Unlike the federal minimum wage, California’s statewide minimum wage is automatically adjusted each year for inflation and is intended to help workers keep pace with the rising cost of living without requiring lawmakers to pass new legislation.
The federal minimum wage, by comparison, has remained at $7.25 an hour since 2009, the longest stretch without an increase since the federal minimum wage was established in 1938, according to the governor’s office.
Beginning Jan. 1, California’s statewide minimum wage will increase to $17.40 an hour. State officials said the new rate will be the highest statewide minimum wage in the nation and nearly two-and-a-half times the federal minimum wage.
“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations,” Newsom said in a statement. “California has chosen a different path — one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck.”
The governor’s office said California’s statewide minimum wage has increased from $12 an hour when Newsom took office to $17.40 an hour beginning in 2027. The administration also highlighted several affordability measures enacted during Newsom’s tenure, including free school meals for public school students, expanded paid family leave, increased access to child care, utility bill relief, and higher minimum wages for fast-food and many health care workers.
Some California cities and counties already require employers to pay local minimum wages that exceed the statewide rate, meaning workers in those jurisdictions may already earn more than the new statewide minimum.
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