Alaska’s minimum wage is set to rise, but increase fails to keep pace with housing costs

Alaska’s minimal wage will rise 51 cents, to $10.85 per hour, beginning subsequent yr.

The adjustment, introduced Friday by the Alaska Division of Labor and Workforce Growth, is meant to compensate for a 5% rise in the price of dwelling in Anchorage. Alaska regulation requires the minimal wage to be adjusted annually for inflation. Regardless of the rise, the minimal wage stays effectively under a broadly used measure of a dwelling wage in Alaska.

In Anchorage, the median condo rental value is $1,339 per 30 days, in accordance with a survey performed this yr by the Alaska Housing Finance Corp. and the Division of Labor. That determine consists of lease and utilities and rose 14% from final yr.

Bearing in mind 12% withheld for taxes, somebody incomes minimal wage must work 35 hours per week in a four-week month to cowl the price of housing.

The MIT dwelling wage calculator identifies $1,554 in different prices per 30 days, together with meals, transportation and different bills. That determine relies on estimates from numerous federal sources.

At minimal wage, a person grownup must work one other 41 hours per week to cowl these prices.

Altogether, estimates point out somebody incomes minimal wage must work 71 hours per week to fulfill their fundamental wants in Anchorage.

If that particular person had one little one, they must work an extra 20 hours per week at minimal wage to cowl the price of little one care, in accordance with the MIT estimate. Every extra little one is estimated to price one other 20 hours of labor per week.

A dwelling wage is outlined because the minimal quantity wanted to pay for fundamental wants whereas working a normal 40-hour workweek. In all of Alaska’s cities and boroughs, the minimal wage is considerably under the dwelling wage quantity.

Within the Matanuska-Susitna Borough, somebody must work 69 hours per week at minimal wage to fulfill fundamental wants. In Fairbanks, it’s 75 hours. In Juneau, it’s 74 hours.

Based mostly on present estimated prices, the minimal wage would must be above $18.08 per hour with a view to be a dwelling wage in Anchorage.

No state’s present minimal wage is at or above the statewide dwelling wage.

This story initially appeared within the Alaska Beacon and is republished right here with permission.