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Missouri minimum wage increase in 2022

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The Missouri Department of Labor and Industrial Relations announced the minimum wage in Missouri is set to increase on Jan 1. The minimum wage will increase from $10.30 to $11.15. This aligns with scheduled annual wage increases in accordance with Missouri’s Proposition B, which was voted into law in 2018.

The measure was set to increase the minimum wage from $7.85 (2018) to the following: 

  • $8.60 in 2019
  • $9.45 in 2020
  • $10.30 in 2021
  • $11.15 in 2022
  • $12.00 in 2023

Thereafter, the minimum wage was set to increase or decrease each year based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

The 85 cent increase applies to all private businesses, except for retail and service businesses whose gross annual sales are less than $500,000. Employers must also pay tipped employees at least half of their minimum wage, plus the amount necessary to bring the employee’s total compensation to $11.15 per hour. Most agricultural and farm employees are exempt from the wage increase.

Additionally, Missouri Governor Mike Parson proposed a 5.5% pay increase, as well as $15 an hour for state employees. Parson's plan would take effect Feb. 1 but first needs the approval of state lawmakers, whose annual session begins in January. 

According to U.S. News report, the pay increase would cost $91 million for the remainder of the 2022 fiscal year that ends in June and an additional $218 million for the next budget year. More than half of that money would come from general state revenues, with the rest from other sources.

 

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