Montgomery County minimum wage will increase July 1 for mid and large-sized employers.
The minimum wage rate will increase by 45 cents to $17.15 per hour for large employers — with 51 or more employees — and by 50 cents to $15.50 per hour for mid-sized employers that have 11 to 50 employees.
The change will amount to $20 more for every 40 hours worked, which is $1,000 in additional earnings over the course of a year, according to a press release.
County law requires new minimum wage rates to be determined each year on March 1 to keep pace with inflation. The new rate is determined by changes in the regional consumer price index, which was 2.8% last year.
Employers with 10 or fewer employees must continue paying employees the $15 per hour rate that became effective January 2024 after Gov. Wes Moore signed the Fair Wage Act of 2023.
County Executive Marc Elrich, who sponsored the county code requiring minimum wage to increase based on inflation when he was a councilmember, said increasing the rate provides immediate relief to low-wage workers and will stimulate the economy by giving money to those who are most likely to spend it locally.
“Increasing the minimum wage is crucial for addressing income inequality and ensuring that all workers can earn a sustaining wage,” Elrich said in the press release. “A minimum wage law indexed to inflation fosters a more equitable society where hard work is properly rewarded and reduces the need for government assistance programs.”
