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Washington state's minimum wage to increase $1.25 in 2023

The 8.66% increase for next year is tied to the cost of common goods, including housing, food and medical care.

SEATTLE — The minimum wage in Washington state will jump up to $15.74 in January, an $1.25 increase from its current level. 

State law ties Washington's minimum wage to the federal Bureau of Labor Statistics' Consumer Price Index. The Washington State Department of Labor and Industries (L&I) calculates the minimum wage by comparing the Consumer Price Index for August, year over year. 

The 8.66% rise for 2023 is tied to the cost of common goods, such as housing, food, and medical care, L&I said. 

RELATED: History of Washington state's minimum wage

The state minimum wage is applicable to workers 16 years and older. Workers between the ages of 14 and 15 can earn 85% of that rate, or $13.38 per hour.

Cities are allowed to set higher minimum wages, and both Seattle and SeaTac have higher rates. Tukwila voters in November will decide whether to raise their city's minimum wage $3. 

Uber, Lyft and other rideshare drivers

Legislation passed in 2022 grants new rights and protections for rideshare drivers, which includes provisions for pay and sick leave. 

Starting January 1, drivers will see a change in minimum pay from rideshare companies. 

For trips in Seattle, drivers will earn either 64 cents per passenger minute and $1.50 per passenger mile, or $5.62, whichever is greater.

For trips outside of Seattle, drivers will earn either 37 cents per passenger minute and $1.27 per passenger mile, or $3.26, whichever is greater.

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