On Tuesday, Gov. Jared Polis announced that Colorado’s minimum wage will increase from $12.56 per hour to $13.65 beginning January 1.
An increase of 8.68%, this change will adjust the minimum wage for inflation.
“We are building a strong economy that works for all Coloradans,” Polis, a Democrat, said in a press release from his office. “This new minimum wage of $13.65 builds upon our work to save Coloradans money, reduce the cost of everyday items, and put money back into the pockets of hardworking Coloradans.”
Thanks to Amendment 70, which voters enshrined into the state constitution in 2017, annual adjustments to the minimum wage must match the increasing cost of living as measured by the Consumer Price Index of Colorado (CPI) for the Denver Metropolitan area.
The announcement follows several other initiatives taken by the Polis administration aimed at saving Coloradans money.
These include sending tax rebates ($750 to individual filers and $1,500 to joint filers) in August, instead of next year.
Local governments have been permitted to increase their minimum wage by as much as $1.75 or 15% more than the state since 2019.
The announcement was made earlier this week to provide ample time for employers and employees to prepare for the change in the new year.