California’s 40-cent minimum wage increase to $16.90 will still leave many at poverty line
As part of the new state laws effective January 1, California’s minimum wage has gone up forty cents, from $16.50 to its current $16.90 to help reflect the Golden State’s ever-increasing cost-of-living adjustments.
While this forty-cent increase applies to all California employers, certain industries have maintained a higher minimum wage since 2024, including fast food employees at $20/hour, and health care workers with varying minimum wage rates from $18-$24/hour due to the nature of the employer. January 1st saw many California cities take the new minimum wage further; cities like Oakland at $17.34, San Diego at $17.75, and West Hollywood the highest at $20.25.
All cities and towns within our own San Bernardino County will maintain the rate of $16.90.
How does this shake out for an average person making minimum wage at our increased cost of living?
Using my own monthly expenses, including utilities, fuel, car and health insurance, cellphone, groceries, and median rent for one-bedroom at $1500 a month, I calculated how much this increase might improve or maintain the minimum wage employee’s current quality of life, and if there is any money left over to save for emergencies or savings.
A 40-hour week at $16.90 / hour = $2704 monthly (gross earnings before taxes)
Total monthly expenses:
Rent: $1500
Car payment: $350
Car insurance: $160
Car Fuel: $180
Electric: $80
Gas: $30
Water: $30
Internet: $60
Phone: $68
Groceries: $180
Health insurance: $118
Total Cost= $2756
Total Income = $2704
Deficit: $52
