Sacramento, CA– California’s statewide minimum wage will increase to $17.40 per hour beginning January 1, 2027, under an automatic adjustment tied to inflation.
Gov. Gavin Newsom announced the increase, which applies to workers covered by the state minimum wage law. California’s minimum wage has increased from $12 per hour when Newsom took office to the new rate taking effect in 2027. State officials said the annual adjustment is designed to keep wages aligned with changes in the cost of living.
The increase is part of a broader set of state policies focused on affordability, including expanded childcare programs, paid family leave, healthcare initiatives and other assistance programs for California residents. The governor’s office also highlighted the state’s economic growth, including business creation, technology investment, manufacturing and agriculture. California reported a gross domestic product of $4.25 trillion in 2025 and said the state remains one of the nation’s largest economies.
