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Minimum Wage of $15 for Federal Contractors to Begin Jan. 30

The $15 rate was set in an executive order issued by President Biden in April. The change is expected to affect 327,000 workers, CNBC says.
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The $15 minimum wage for federal contractors decreed by President Joe Biden will be put into all new contracts with government agencies starting Jan. 30, the government said Monday.

In April, Biden issued the executive order boosting the minimum wage for federal contractors from $10.95. The change is expected to affect 327,000 workers, CNBC reports.

To be sure, the higher pay is required only in new contracts and thus doesn’t apply to workers in existing government contracts, which can last three to five years, the news service notes.

Companies in the private sector have been lifting minimum wages right and lefts since the pandemic began.

Earlier this month, IKEA, the Netherlands-based discount furniture darling, joined the bandwagon, announcing a move to $16 an hour in the U.S.

Some workers will start at $17 or $18 depending on location. The new levels take effect Jan. 1 and will apply to full-time, part-time, temporary, and seasonal workers. That will lift the average hourly wage to $20 for Ikea workers.

A day before Ikea’s move, department-store giant Macy’s M said it’s increasing its minimum wage to $15 an hour by next May and will expand education benefits, as the race for workers heats up among companies.

Once the pay increase is completed, the average base pay for the iconic department-store chain’s workers will be above $17 an hour. Average total pay will be $20 an hour, it said.

As for the benefits, beginning in February, Macy’s will provide a $35 million debt-free education program.