Governor Brown announced her plan to increase the minimum wage statewide. The proposal was developed after conversations with stakeholders in both the public and private sectors. Their input was essential to finding Oregon’s path forward to a higher minimum wage. The plan will be brought for debate during the 2016 legislative session next month.

“The costs of essentials such as food, child care, and rent are rising so fast that wages can’t keep up,” said Governor Brown. “Many Oregonians working full-time can’t make ends meet, and that’s not right.”

Recognizing that Oregon businesses need certainty and time to plan, the proposal calls for a two-tiered minimum wage that increases gradually over the next six years, starting in 2017. The plan establishes a higher minimum wage in the Portland metropolitan area, where the economy is growing faster and has traditionally been stronger, than in the rest of the state.

Outside of the Portland Urban Growth Boundary, the wage will be raised to $10.25 in 2017 and increase to $13.50 by 2022. Within Portland’s Urban Growth Boundary, the wage will be set at 15 percent above the statewide minimum wage, increasing to $15.52 by 2022. After 2022, the minimum wage will return to the current rate of increase, in conjunction with the Consumer Price Index.