PA Minimum Wage – Passes PA House, Moving to Senate

What happened:
The Pennsylvania House passed House Bill (HB) 1549 (Rep. Jason Dawkins, D-Philadelphia) to raise the state minimum wage from $7.25 per hour — where it has stood since 2009 — to $15 by 2029, with steps to $11 in 2027 and $13 in 2028. The bill passed narrowly, 102-101, with four Republicans joining Democrats in support, and now moves to the Republican-controlled Senate, where similar legislation has failed in 2023, 2024, and 2025.

The scale of the issue:
Pennsylvania’s minimum wage has not increased in 16 years and is tied for lowest in the nation at $7.25 per hour. All neighboring states have minimum wages above the federal rate, with most now exceeding $15 per hour. According to the Department of Labor and Industry, nearly 43,000 workers earned at or below minimum wage last year — 50% under age 25, 80% women, and a majority working part-time. The Keystone Research Center estimates approximately 866,000 Pennsylvania workers earning below $15 per hour would see increases if the bill becomes law.

The budget connection:
Governor Shapiro has argued that a minimum wage increase would reduce Medicaid enrollment by roughly 61,000 workers and save the state approximately $300 million annually — a pitch to Senate Republicans as a mechanism to reduce human services costs. This framing may give the bill more traction than in prior years given the current budget environment.

What it means for nonprofits:
Nonprofits with large frontline workforces — particularly in human services, home health, housing, and childcare — will see the most significant operational impact. Even organizations already paying above minimum wage may face wage compression across their compensation scales. Nonprofits should be modeling full payroll impact now, identifying ways this bill could benefit employees such as improved retention, and considering implementation timing as they plan budgets. Nonprofits contracting with the state for rate-based services should also consider whether current contract rates would cover increased labor costs and engage legislators on that question.

Where things stand:
HB 1549 is in the Republican-controlled Senate with no committee assignment announced. Engage your state senators before a vote — particularly if your organization has direct experience with the workforce challenges and wage pressures the bill is intended to address.