California’s minimum wage will increase in 2026 for inflation. How much?
California’s hourly minimum wage will increase by 40 cents next year.
The statewide minimum wage will increase to $16.90 from $16.50 an hour on Jan. 1, 2026. The director of the California Department of Finance, Joe Stephenshaw, announced the new number Friday in a formal letter to Gov. Gavin Newsom and legislative leaders.
Next year’s minimum wage represents a 2.49% increase from the current number — a bump based on a nationwide measurement of inflation experienced by workers. The increase from last year to this year was 50 cents.
The annual minimum wage adjustment is calculated to be the lower option between a 3.5% increase or the average U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers from the prior July to the end of June, Stephenshaw explained in the letter. The notification came on the last day allowed by the law, Aug 1.
California voters last year rejected a ballot proposition that would have boosted the minimum wage to $18 an hour.
This story was originally published August 1, 2025 at 5:02 PM with the headline "California’s minimum wage will increase in 2026 for inflation. How much?."
