Pa. minimum wage increases to $6.25

Pennsylvania’s minimum wage was officially raised to $6.25 on Jan. 1, 2007, marking its… Pennsylvania’s minimum wage was officially raised to $6.25 on Jan. 1, 2007, marking its first increase in nine years.

The legislation was passed by the Pennsylvania General Assembly on June 30, 2006, and called for the minimum wage to be increased to $7.15 by July 1, 2007, with certain exceptions for businesses that employ 10 people or less.

Such businesses were required to raise their minimum wage to $5.65 on Jan. 1. By July 1, 2008, all businesses must maintain a minimum wage of $7.15.

According to State Sen. Jay Costa, D-Allegheny, the wage increase has been long overdue, and Gov. Ed Rendell was one of its strongest supporters.

“I think it’s something we needed to do to allow for our individual workers to make a decent wage,” Costa said.

Costa said the increase was hastened when bordering states New York, Ohio and West Virginia passed legislation to raise their minimum wages, sparking fear that potential employees may be drawn away from Pennsylvania.

The bill received strong opposition from many Republican politicians who felt the increase may result in higher unemployment rates. Costa said this argument doesn’t prove true, citing that the employment rate has increased in states that have raised their minimum wage.

Republican House and Senate members could not be reached for comment.

Studies by the Keystone Research Center show that more than 45,000 workers in Allegheny County will benefit directly from the increase, but the increase doesn’t quite make up for wage gaps caused by inflation.

According to studies by the Economic Policy Institute, the purchasing power of the minimum wage has decreased by 10 percent since 1997, and its value was at its lowest since 1955.

Costa said that even though the Pennsylvania business community lobbied against the increase, he feels Pennsylvania has “struck a balance” to accommodate the needs of both small and large businesses in the region.