Skip to main content
Ann Arbor logo
File #: 26-0188    Version: 1 Name: 2/19/26 Living Wage increase 04/30/26
Type: Report or Communication Status: Filed
File created: 2/19/2026 In control: City Council
On agenda: 2/19/2026 Final action: 2/19/2026
Enactment date: Enactment #:
Title: Living Wage Increase Effective April 30, 2026
Attachments: 1. LW_Poster_2026-27.pdf

Title

Living Wage Increase Effective April 30, 2026

Memorandum

As required by the City Ordinance, Chapter 23, Section 1:815 subsection (3), the amount of living wage is adjusted annually by a percentage equal to the percentage increase, if any, in the federal poverty guidelines as published by the US Department of Health and Human Services.  We have examined the federal poverty guidelines for 2026 and we find that there is a 1.98% increase over last year for an average family size of one.

 

Federal Poverty Guidelines:

 

The Poverty Level for a family of one for 2025 is $15,650

The Poverty Level for a family of one for 2026 is $15,960 an increase of 1.98%.

 

Living Wage Rate change from 2025 to 2026:

 

2025

$17.08/hour for those employers paying health insurance

$19.04/hour for those employers NOT paying health insurance

 

2026

$17.42/hour for those employers paying health insurance

$19.42/hour for those employers NOT paying health insurance

 

The Procurement Unit will provide service providers with an updated Living Wage poster and compliance form.  Once service providers remit forms to the Procurement Unit, their new Living Wage compliance forms will be updated in the financial system.

 

In the last year, the City has not received any complaints regarding pay practices for possible violation of the City Living Wage Ordinance.

Staff

Prepared by: Colin Spencer, Purchasing Manager

Reviewed by: Marti Praschan, Chief Financial Officer

Approved by: Milton Dohoney Jr., City Administrator