Joe Biden raises minimum wage for government contract workers

US President Joe Biden will sign a decree on Tuesday raising the hourly wages of federal government contract workers to $ 15, a step towards the campaign pledge to raise the minimum wage to that level for all employees.

Read also: Why the doubling of the minimum wage is creating controversy in the United States

This decree "

requires companies under contract with the federal government to pay a minimum hourly wage of 15 dollars to hundreds of thousands of workers who work on a federal contract

", announced the White House in a press release.

The current minimum wage is $ 10.95 an hour for these workers, who are not public servants but work for the US federal government through companies under contract with the state.

Maintenance or upkeep agents in federal buildings, waiters in government cafeterias, or nurses who take care of war veterans: "

hundreds of thousands of workers

" will benefit from this increase, according to the White House, which did not however indicate the precise number of workers concerned.

No cost increase for the taxpayer

However, they will still need a little patience, since the measure will apply from March 30, 2022 for all new contracts, then gradually with each contract renewal - each year for the most part.

Hourly wages will then be increased each year based on inflation.

The decree also harmonizes the minimum wage for all federal contract workers, removing lower wages for workers who receive tips, currently at $ 7.65 per hour.

The White House ensures that this salary increase will not be accompanied by an increase in cost for the taxpayer, and even believes that this will improve productivity and reduce turnover as well as related costs.

And that "

ensures that hundreds of thousands of workers no longer have to work full time while living in poverty,

" also argues the Biden administration.

Read also: United States: raising the minimum wage would have mixed results

This measure should encourage employers to follow suit.

Raising the minimum wage for all workers in the country to $ 15 by 2025 from $ 7.25 currently, was a campaign pledge by Joe Biden.

It was in the first iteration of Joe Biden's stimulus package, but had to be scrapped in order to get a deal in the Senate for the rest of the plan to pass.

It was therefore adopted in early March, leaving aside this flagship promise.

Several American distribution giants have nevertheless raised their minimum wages to reach or exceed 15 dollars, such as Costco, Target or Amazon.