Vermont’s minimum wage will increase by five percent on Jan. 1.
That means the lowest paid Vermonters will see their pay go from $7.68 an hour to $8.06.
In 2005 the Legislature passed a law that required the minimum wage to increase every year by the rate of inflation or 5 percent, whichever is smaller.
Gov. Jim Douglas says the extra money will make a difference for working families struggling to make ends meet.
At the same time, the basic wage for tipped employees will increase from $3.72 to $3.91 per hour.