Federal Custodians Set for Pay Raises Next Year

Custodians working for the federal government will receive at least US$15 an hour after U.S. President Joe Biden last week raised the minimum wage for federal contractors, The Associated Press (AP) reports.

Biden signed an executive order mandating all government agencies to incorporate a US$15 minimum wage in new contract solicitations beginning January 30, 2022 and by March 30, 2022 all agencies need to implement it into new contracts. Additionally, the order includes a provision indexing the minimum wage to keep up with the rising cost of living and eliminates the tipped minimum wage of $7.65 an hour by 2024. 

The order will benefit 390,000 low-wage federal contractors according to the Economic Policy Institute. Many of these federal contractors are cleaning professionals and maintenance workers who earn the current minimum wage of $10.95 an hour. They will be receiving a 37% pay hike.

“This executive order will promote economy and efficiency in federal contracting, providing value for taxpayers by enhancing worker productivity and generating higher-quality work by boosting workers’ health, morale, and effort,” the White House said in a statement.

In a roundtable hosted by the U.S. Department of Labor, Marty Walsh, U.S. Secretary of Labor, said, “These workers and all workers deserve to earn a living wage, so we’re going to be proud to implement and enforce this action at the Department of Labor when it goes into effect early next year.”