Maryland’s New Increased Minimum Wage

As of Jan. 1, Maryland has enacted a plan to raise the minimum wage statewide.

Maryland’s minimum wage will increase from $12.20 to $13.25 for larger businesses and $12.80 for smaller businesses in 2023. By 2026, the government estimates that all businesses–big or small–will have a minimum wage value of $15. 

By 2025 an increase in the minimum wage for larger businesses requires employers to pay $15. Maryland came to adopt the new $15 minimum wage after Maryland’s General Assembly voted to overturn former Gov. Larry Hogan’s veto of Maryland’s minimum wage. Under the new bill, companies with 15 or more employees must increase their pay each year until 2025; however, smaller companies have been given until 2026 to grow to $15. 

Many Marylanders working a minimum wage paying job feel the small increase year by year is ineffective, especially with the inflation of essential products like groceries and gas. In an article written by SoFi, it is estimated the rise of the minimum wage will result in the loss of roughly 1.5 million jobs within the next decade since not all businesses will be able to afford the increase.

“Even though raising the minimum wage seems like it will give people more money, it will lower the value of the dollar. In return, companies will have to raise the price of goods and services to compensate for paying higher wages,” senior Elizabeth Le said. “Especially during a recession, the minimum wage should not be raised.”

Many people are trying to stay positive about the small increases year to year. “I believe it’ll make a difference in my life in terms of spending/saving since even minor increases in pay accumulate can make a big difference in the long run,” senior Raven Lee said.  

Maryland’s new minimum wage bill will potentially help over half-a-million Marylanders as a major step in overcoming income inequality and poverty statewide. It will still be tight, but likely easier, for Marylanders to pay for necessities. 

“Raising the federal minimum wage to $15 an hour would improve the overall standard of living for minimum wage workers. These workers will be more easily able to afford their monthly expenses, such as rent, car payments, and other household expenses.” Sourced by JacksonLewis news page.