The Seattle City Council has unanimously approved a $15 an hour minimum wage that is the highest anywhere in the US and more than double the current federally mandated level.

The new wage will become effective in 2017 and will be progressively increased until it reaches $18.13 an hour in 2025. The current federal minimum wage is $7.25 an hour.

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Seattle Mayor Ed Murray is expected to sign the ordinance into law this week. Mayor Murray established a task force of business and labor leaders this year to create a proposal to eventually reach the $15 minimum wage.

The law means that wages in Seattle will jump 60% compared to the State of Washington's $9.32 hourly wage level. Washington's minimum hourly wage is already the highest state pay floor in the USA.

San Francisco has the highest current minimum wage at $10.74 an hour.

"Voters clearly said income inequality is a city issue," said Seattle council member Sally Clark. "We will redefine the minimum wage in Seattle and the country."

The ordinance divides city employers into four groups and gives them from 2017 and 2021 to meet the $15 wage. Wages will be increased over a span of three to seven years based on the size of the employer and the benefits it provides. Federal and state wage rules normally apply the same minimum wage to all businesses.

The ordinance requires businesses with over 500 employees in Seattle or nationwide to increase wages in three stages until wages reach $15 an hour by 2017. Large employers that offer health-insurance benefits will be given an additional year to comply.

Small businesses will have until 2021 to pay $15 an hour. There will be different rules for tipped and non-tipped workers.

Wages for all four categories of employers will be adjusted annually after reaching the $15 mark. All employers will comply with the same wage floor, estimated at $18.13 an hour, in 2025.

San Francisco is said to be considering raising its minimum to $15 while Los Angeles is looking at $15 for hotel workers. San Diego is looking at a $13 an hour wage. Oakland is considering $12.25. 

TagsMinimum, wage, US, increase, Detroit, 2017