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CBO: Minimum wage hike would add $15 billion to U.S. payrolls

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in Compensation and Benefits,Human Resources

Democratic efforts to raise the national minimum wage to $10.10 per hour would cost private-sector employers an additional $15 billion per year, according to an analysis by the nonpartisan Congressional Budget Office (CBO).

Legislation to raise the minimum wage is expected start moving in the Senate when Congress convenes following its Easter recess.

A bill sponsored by Sen. Tom Harkin, D-Iowa, would raise the minimum wage in three steps, reaching $10.10 after 2½ years. The bill could squeak through the Senate, but will probably stall in the House of Representatives.

Employers currently spend $5.4 trillion on salary and wages each year. If the CBO’s projection is accurate, raising the minimum wage to $10.10 would increase payrolls by 0.003%.

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