June 28, 2023

County Minimum Wage Will Increase on July 1 to $16.70 Per Hour for Large Employers


The minimum wage rate for all workers in Montgomery County will increase on July 1, 2023, as required by the County Code. The County’s $15 minimum wage law went effect in 2017 as a result of legislation sponsored by then-County Council member, and current County Executive, Marc Elrich. County Code Section 27-68 establishes minimum wage rates for large, mid-sized, and small employers and stipulates that each rate be adjusted for inflation annually after reaching $15

“I was proud to lead two successful efforts to raise the minimum wage rate for workers in Montgomery County,” said County Executive Elrich. “We were the first county in Maryland to raise the rate to $15, and we were again the first to index rate to inflation so that it does not lose its purchasing power over time. Raising the minimum wage is about dignity and justice for hardworking individuals who deserve to be paid a decent wage for their work.”

Based on the 6.8 percent increase in the consumer price index during 2022 for all urban wage earners and clerical workers (CPI-W) in the Washington, D.C.-Arlington-Alexandria area, the minimum wage rate for large employers (51 employees or more) will increase to $16.70 per hour. This is the second year the large employer rate has been adjusted by the increase in CPI-W.

The rate for mid-sized employers (11-50 employees) will increase to $15 per hour. Starting July 1, 2024, the minimum wage rate for mid-sized employers will also be indexed to inflation.

The rate for small employers (10 or less employees) will increase to $14.50 per hour. The rate for small employers will increase again on Jan. 1, 2024, because of a change in state law championed by Gov. Wes Moore and the entire Montgomery County Delegation to the General Assembly. Inflation indexing for the County’s small employer wage rate will begin on July 1, 2025.

“I was raised by a single mom who worked two jobs—and I understand the significance that raising the minimum wage will have on so many Montgomery County families,” said County Council President Evan Glass. “In these tough economic times, we must increase wages and support working families. The minimum wage increase on July 1 will help ease some of the economic burden that many families are currently feeling.”

Council Economic Development Committee Chair Natali Fani-Gonzales said the increase in the minimum wage is a positive step for the County.

“I am proud to be part of a County that recognizes the dignity of work not only in our word, but also in our deeds,” said Counclmember Fani-Gonz├ílez. “The enhanced minimum wage put into place by my predecessors in County leadership puts more money into low-income and immigrant workers pockets—a needed reprieve as costs soar across the board for working families.”