Starting next month, minimum wage workers in Oregon can expect a boost in their pay. On July 1, the state’s minimum wage will increase by 50 cents per hour. However, it’s important to note that the minimum wage varies based on location within the state.
While the Oregon Employment Department has not released its wage analysis for 2023 yet, data from the end of 2022 shows that slightly over 4% of the state’s more than 2.2 million jobs paid the minimum wage. The average hourly wage in Oregon in 2022 was $31.17.
Data shows that the standard minimum wage in Oregon will rise to $14.70 per hour, providing workers with a higher baseline income. In the Portland Metro area, workers will receive a higher wage of $15.95 per hour, which is $1.25 above the standard rate. On the other hand, rural workers will see their minimum wage increase to $13.70 per hour, which is $1 below the standard rate.
Here in Oregon is among the few states that prohibit tip credits. This means that workers who receive tips, such as bartenders, baristas, and servers, must be paid at least the minimum hourly wage in addition to their tips.
Last year, Oregon officials introduced a new policy to index the minimum wage rate to the consumer price index, as determined by the U.S. Bureau of Labor and Statistics. This index tracks the increase in prices for typical household expenses like rent, groceries, and fuel. Over the past year, the nationwide consumer price index has risen by more than 3%.
The goal of indexing the minimum wage to inflation is to ensure that Oregon workers’ wages keep up with the economic realities they face. Officials from the Bureau of Labor and Industries emphasize that wage increases, especially for those at the lower end of the income spectrum, have broad benefits. They contribute to increased economic activity at the community level and provide support to local businesses.
Oregon has maintained a minimum wage higher than the federal rate since the early 1990s. In cases where the state’s minimum wage exceeds the federal rate, workers are entitled to the higher amount. The federal minimum wage has remained at $7.25 per hour for the past 15 years.
