Minimum wage will increase next year but not by much

Published: Sep. 16, 2020 at 5:07 PM AKDT
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ANCHORAGE, Alaska (KTUU) - Starting Jan. 1, 2021, employees making minimum wage will see their hourly rate increase from $10.19 to $10.34. The wage increase stems from a ballot initiative that passed in 2014 which would require the Alaska minimum wage to be adjusted for inflation each year.

School bus drivers will also see a small pay increase. State law requires public school bus drivers to be paid at least two times the current minimum wage.

The Alaska minimum wage is higher than the federal minimum wage, which is currently $7.25 an hour, and state law requires the Alaska minimum wage to be at least $1 per hour more than the federal minimum wage.

The federal minimum wage is $2.13 for employees who are tipped, but in Alaska, tips do not count toward the minimum wage, according to a statement from the Alaska Department of Labor and Workforce Development.

clarification: This story has been updated after the Department of Labor and Workforce Development issued a correction in an updated press release stating the minimum wage amount was not $10.33 but $10.34.

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