Starting March 1, 2025, the City of Santa Fe will officially increase its Living Wage to $15.00 per hour. This new rate is part of the city’s efforts to ensure that workers earn a fair income that keeps up with the rising cost of living.
The update comes after a 2.76% increase in the Consumer Price Index (CPI) for the Western Region, which tracks changes in the cost of things like food, housing, and transportation. This is a yearly adjustment based on real economic data. In 2024, the Living Wage was $14.60, so this new rate reflects a small but meaningful increase for local workers.
What Is the Living Wage?
The Living Wage is the minimum amount an employer in Santa Fe must pay an employee. It is not the same as the federal minimum wage. The federal minimum has stayed at $7.25 per hour since 2009, which is less than half of Santa Fe’s new rate. This shows how committed Santa Fe is to creating a fairer local economy.
Why It Matters
Paying a living wage helps reduce poverty and support working families. It ensures that people can afford basic needs like rent, food, and healthcare. According to the Economic Policy Institute, low federal wages have made income inequality worse in the United States. Santa Fe’s local policy helps to push back against that by setting higher wage standards for workers in the city.
Who Must Follow This Rule?
All employers operating within Santa Fe must pay workers at least $15.00 per hour starting from March 1, 2025. This applies to full-time, part-time, and even seasonal employees.
However, there’s a special note about tips. If a worker regularly earns $100 or more per month in tips or commission, employers can count those tips as part of the Living Wage. This rule is designed to help balance wages in sectors like restaurants or salons, where tipping is common.
A Step Towards Fairness
Santa Fe’s Living Wage Ordinance is about more than just numbers—it reflects the city’s values of fairness, community well-being, and inclusiveness. By ensuring that workers are paid properly, the city supports a stronger and more sustainable local economy.
This approach helps both workers and businesses. Workers get a fair wage, and businesses benefit from a more stable, satisfied workforce. Over time, policies like this can lead to lower employee turnover and better customer service
The increase in Santa Fe’s Living Wage to $15.00 per hour is a meaningful move to keep up with inflation and rising costs. It shows the city’s dedication to building a community where work is valued and people are paid fairly. All employers in Santa Fe must follow this new wage from March 1, 2025. Whether you’re an employee or a business owner, it’s important to be aware of the updated rate and what it means for the city’s workforce and economy.