As the cost of living continues to rise, the need for an adequate minimum wage has become increasingly pressing. In an effort to address this issue, many states are taking steps to raise their minimum wage. Maryland is no different, with plans to increase the minimum wage to $15 per hour by 2023.
At present, the federal minimum wage is set at $7.25 per hour, with most states opting to increase that rate further in order to meet the needs of their citizens. Some states, such as California, Massachusetts, and New York, have already set their minimum wages at $15 per hour, while others are in the process of slowly phasing in the increase. Maryland is among the latter, as the state has chosen to gradually increase its minimum wage from the present $11 per hour to $15 over the period of four years.
The full implementation of a $15 per hour minimum wage in Maryland is expected to have a positive effect on many of the state’s citizens. Studies have shown that increasing the minimum wage can help improve the overall purchasing power of those in lower-wage jobs, allowing them to buy more of their basic needs while allowing their employers to benefit from increased employee buying power. This, in turn, could help to stimulate the local economy. Additionally, the effect could be even more pronounced for those working in rural areas, which tend to have higher poverty rates.
The effects of the $15 minimum wage increase on employers, however, could be less pronounced. Studies have shown that many employers in Maryland are already paying their employees at least the current $11 minimum wage, meaning that a full implementation of the $15 rate may not affect them as deeply as it would those in lower-wage jobs. Additionally, studies have indicated that while a higher minimum wage could increase labor costs, it could also decrease employee turnover and improve productivity, effectively offsetting the costs.
While it is widely agreed that the minimum wage should be increased to help those in the lower-income brackets, there are differing opinions on the rate at which it should be raised. Regardless, it is clear that the full implementation of $15 per hour in the state of Maryland by 2023 could have a positive effect on both employees and employers. This, along with the rising cost of living, has led many to recognize the need for an adequate minimum wage, one that will ensure that all citizens of the state are able to meet their basic needs.
