California's minimum wage rate for 2027 is $17.4 an hour, but these workers are set to earn more than that

The California minimum wage for 2027 is $17.4 per hour, effective January 1, 2027, for every employer, according to the state's Department of Industrial Relations (DIR). But higher industry or local rates may be applicable, meaning that your required rate depends on where and in what sector you work. The $17.4 wage rate was certified by the California Department of Finance in July this year.

Minimum wage rate over the years

The statewide floor is $17.40 an hour. The rate is set to jump from $16.9 in 2026, marking an increase of $0.5 or about 3 percent. The minimum wage rate was $15.50 in 2023, $16 in 2024, and $16.50 in 2025. The calculation formula is based on inflation.


California Labor Code Section 1182.12 requires the Department of Finance to calculate an adjustment by August 1 every year. This is done by using the lesser of 3.5 percent or the surge in consumer prices.

The average consumer prices for urban wage earners (CPI-W) for July 2025 to June 2026 was 2.99 percent above the prior 12 months.

Where will employees earn more?

Workers in certain cities and sectors qualify for a minimum wage above $17.40. They include:

Workers in City of San Diego: $18.35

Workers in City of Los Angeles: $18.42

Workers in San Francisco: $19.61

Workers in Hayward (26 or more employees): $18.39

Covered fast-food workers: $20

Covered healthcare workers: Up to $25

San Diego hotels and amusement parks: $19.00

San Diego event centers: $21.06

Nearly 40 cities and counties in California have their own minimum wage ordinance, and most of them set it above the state rate.

Minimum wage in key cities

San Diego’s schedule lists $18.35 an hour wage beginning January 1 next year, up from $17.75 this year. Los Angeles ($18.42) and San Francisco ($19.61) raised wage rates on July 1 and adjust on that date each year, so their figures for 2027 are not out yet.

Hayward also adjusts each January 1 and splits by employer size: From January 1, 2027, it is $18.39 for 26 or more employees and $17.40 for 25 or fewer. For 2026, these figures are $17.79 and $16.9.

Comparison with federal wage rate

The federal minimum wage has been $7.25 per hour since 2009 under the Fair Labor Standards Act, which is enforced by the US Department of Labor. California’s $17.40 is more than double of that figure. The coming year, the states of Washington ($17.73) and Connecticut ($17.48) will surpass the Golden State in terms of minimum wage.