The wage of United States citizens depends on a few different factors. The job position, for example, makes us earn more or less money each month. Likewise, in some states it is possible to get a higher salary than in others.
This makes some Americans decide to move to a different state. And the fact is that collecting a higher salary not only affects the worker’s present, but also his or her future, as we will see later. But the important thing in this case is that in California we find an increase in the minimum wage.
This increase means that many Americans can directly enjoy a little extra money. Undoubtedly, any improvement for the worker makes that they can have a better standard of living, even if such improvement or such increase is not huge.
At the moment this increase has been made only in California, as we have mentioned, but it is possible that we will find a chain reaction. These types of wage increases are usually accompanied by an increase in other parts of the country and sectors.
Who benefits from the wage increase?
Employees of fast food giants will get that wage increase. The increase will be from $15.50 to $16.00 exactly. This increase will be hourly, which makes the minimum wage change noticeably.
Remember that this increase is based on gross pay, so after that we will have to pay taxes. Still, a pay increase is always welcome. Besides that, it is also good to keep in mind that another wage increase is expected in the future.
If so, in April we will have another increase. This other increase could be as high as $20 an hour. If this is indeed the case, the increase would be much more noticeable. While it is true that we are still only seeing it in California, it is also true that the increase could expand to other different states.
How does the increase affect Social Security?
The wage increase for fast-food workers will directly affect their Social Security. At the end of the day, retirement benefits depend directly on our wages as workers.
The higher our salary while we are working, the better Social Security check we will have in the future. Therefore, an increase of up to $20 an hour, if finally achieved, may mean that we pay more taxes.
And the more taxes paid, the better retirement check at retirement. That’s why we said that a wage increase is an advantage in the present, but also a huge advantage in the future.
In the event that the increase to $20 is not ultimately realized, at least these Californians now have a raise available to them. As of now, the minimum hourly wage is $16.00. And in the future it will be seen what will happen with this, but that minimum is already available.