The state of California will see its minimum wage increase starting in January 2026. Governor Gavin Newsom announced that the minimum wage will rise to $16.90 per hour, effective January 1st of next year. Most state employees will see the increase in the coming weeks, with some exceptions. Therefore, the minimum wage will increase for millions of citizens in a state as important as California in just a few weeks.
The new minimum wage will rise from the current $16.50, representing a 2.49% increase
California’s minimum wage will be $16.50 per hour in November 2025 and will remain at that level until January, when the next increase for most workers will take effect. The new minimum wage will rise from the current $16.50, representing a 2.49% increase, according to official sources. It is important to note that some workers are subject to exceptions based on section 1182.14 of the state Labor Code. Specifically, the annual minimum wage for exempt employees will increase from $68,640 to $70,304.
Among the exceptions are fast-food restaurant workers, whose current minimum wage is $20 per hour
This increase was calculated in accordance with the state’s inflation rate, as reported by the U.S. Bureau of Labor Statistics. The Golden State Department of Industrial Relations (DIR) stated that the last annual increase to the base salary was on January 21, 2025. As explained above, some workers do not receive the base salary because they are subject to other amounts and increases that are not governed by the same law. Among the exceptions are fast-food restaurant workers, whose current minimum wage is $20 per hour (since April 2024). Similarly, healthcare workers have a minimum wage of $23 per hour since October 16, 2024.
Areas with the highest wages: Emeryville, West Hollywood, Mountain View, San Francisco, Berkeley…
On the other hand, it’s important to understand that, according to the University of California, Berkeley, some cities have minimum wages higher than the state average. Therefore, each case must be studied specifically within its particular context. Among the areas with the highest wages are Emeryville, at US$19.90 per hour; West Hollywood, at US$19.65 per hour; Mountain View, at US$19.20 per hour; San Francisco, at US$19.18 per hour; Berkeley, at US$19.18 per hour; Sunnyvale, at US$19.00 per hour; El Cerrito, at US$18.34 per hour; Belmont, at US$18.30 per hour; Santa Clara, at US$18.20 per hour; and Redwood City, at US$18.20 per hour. These figures were compiled in July of this year.
The new law will introduce a new definition of “pay scale” so workers in the state have a clearer understanding of potential pay increases before applying for job
On the other hand, this isn’t entirely new, as state law mandates an annual increase in the base amount, adjusted for inflation and based on the national Consumer Price Index for urban and administrative workers (CPI-W). The new law will introduce a new definition of “pay scale” so workers in the state have a clearer understanding of potential pay increases before applying for jobs. California law stipulates that the minimum wage cannot be reduced even if the CPI shows a negative result. Meanwhile, the maximum annual increase is 3.5%. The scale must now provide a reasonable estimate of the pay range a prospective employee could expect.
Finally, starting in January, California workers will also be able to use sick leave if they or a covered family member are victims of certain crimes and need to attend court hearings. This is all part of the state’s ongoing updates, which include, for example, expanding the definition of “wage” to encompass salary, overtime pay, bonuses, stock options, and other forms of compensation. Furthermore, employers are prohibited from paying wages lower than those of other workers, in an effort to promote social inclusion.