US To Raise Hourly Federal Contractors' Minimum Wage To $15 - White House

WASHINGTON (Pakistan Point News / Sputnik - 27th April, 2021) US President Joe Biden issued an executive order to raise the hourly minimum wage of Federal contract workers to $15 by 2022, the White House announced in a release on Tuesday.

"Today, President Biden is issuing an executive order requiring federal contractors to pay a $15 minimum wage to hundreds of thousands of workers who are working on federal contracts," the release said.

The White House stressed that such workers are vital for the government's functioning and include cleaning professionals, maintenance workers, nursing assistants, catering service workers, among others.

"Starting January 30, 2022, all agencies will need to incorporate a $15 minimum wage in new contract solicitations, and by March 30, 2022, all agencies will need to implement the minimum wage into new contracts," the release noted. "Agencies must also implement the higher wage into existing contracts when the parties exercise their option to extend such contracts, which often occurs annually."

The executive order will also continue to index the minimum wage to an inflation measure, the White House noted.

Moreover, the order will ensure a $15 minimum wage for federal contract workers with disabilities, the release said.