Pennsylvania Moves Closer to a Higher Minimum Wage with New County-Based Plan

A Fresh Path Forward for Wage Reform

After years of gridlock, Pennsylvania lawmakers have taken a significant step toward raising the minimum wage. In a closely watched vote, the state House approved a bill that would increase the minimum wage through a tiered system based on county populations. The proposal marks a shift in strategy, designed to gain broader support across political lines while addressing the diverse economic conditions across the state.

The legislation, passed with a narrow 102–101 margin, would raise the minimum wage to $15 an hour in 20 counties, including Philadelphia, and to $12 in the remaining 47 counties by 2028. This is the first time in nearly two decades that momentum has gathered around a potentially successful wage hike.

Breaking Down the Tiered Wage Plan

The bill introduces a three-tier structure that adjusts wage increases based on county size and demographics:

Philadelphia County: Minimum wage would jump to $15 per hour starting January 1, 2026.

Next 16 Most Populous Counties (including Allegheny, Erie, and Lancaster): Wages would rise to $12 per hour in 2026, increase to $13 in 2027, and reach $15 in 2028.

Centre, Monroe, and Pike Counties: Included in the second tier at the request of local representatives.

Remaining 47 Counties: Minimum wage would start at $10 per hour in 2026, increase by $1 each year, and reach $12 per hour in 2028.

All counties would receive annual cost-of-living adjustments (COLAs) beginning in 2029. These adjustments would be tied to regional consumer price indices collected by the U.S. Department of Labor and Bureau of Labor Statistics.

Changes for Tipped and Special-Category Workers

The bill also addresses wage equity for tipped employees, such as restaurant servers, who currently earn just $2.83 per hour. Under the new proposal, these workers would receive 60% of their county’s minimum wage.

However, some concerns remain about the bill’s lack of comprehensive coverage for all types of workers. Critics argue that the legislation does not go far enough in eliminating separate wage categories for incarcerated individuals, workers with disabilities, and tipped employees.

A History of Stagnation

Pennsylvania’s minimum wage has remained at $7.25 an hour since 2009, mirroring the federal baseline. During that time, every neighboring state has adopted a higher wage, leaving Pennsylvania increasingly out of step with regional economic standards.

Efforts to pass a statewide $15 minimum wage have failed repeatedly in recent years, often stalling in the Senate. The newly proposed tiered plan aims to overcome these hurdles by providing flexibility to different regions while maintaining statewide legislative authority.

Political Reactions and Next Steps

The bill now moves to the Senate Labor and Industry Committee, where it faces a more challenging path. While some Senate Republicans have voiced general openness to wage increases, others remain cautious about the financial impact on small businesses and nonprofits.

State Rep. Jason Dawkins, who sponsored the bill, described the legislation as a “living wage that transforms all communities.” He emphasized the bill’s tiered design as a way to respect both rural and urban needs while staying within the state’s wage preemption framework, which prevents local governments from setting their own minimum wages.

Some progressive Democrats have voiced mixed feelings. State Rep. Chris Rabb supported the bill but acknowledged that it fell short of his ideal vision for a fair, inclusive wage policy. He intends to introduce separate legislation to eliminate the exceptions for tipped and incarcerated workers.

Still, Rabb acknowledged the political reality: “We know the Senate is not likely to move on this bill easily. But it’s a good-faith step forward.”

Business and Civic Voices Join the Debate

Support for raising the wage isn’t limited to lawmakers. A major employer in Southeastern Pennsylvania urged legislators to approve an increase, citing improved productivity, reliability, and retention as benefits of a better-paid workforce.

City leaders, including Philadelphia’s mayor and council president, have also urged the state to allow local control over wage policy. They argue that cities with higher costs of living and elevated poverty rates need the ability to implement more aggressive solutions.

Where the Senate Stands

State Senate Majority Leader Joe Pittman signaled a willingness to consider changes, stating that a “commonsense adjustment” may be possible. However, he cautioned against wage levels that could hurt small businesses or social service organizations.

Sen. Devlin Robinson, chair of the Senate committee where the bill now resides, called the House measure a good starting point and indicated he may offer his own version. Robinson is open to a COLA, but has yet to define what he considers a “reasonable” wage floor.

Some Republicans have independently supported a $15 wage. Sen. Dan Laughlin previously introduced a bill that would reach that figure by 2026, and he plans to reintroduce similar legislation this year.

Democratic Sen. Christine Tartaglione expressed cautious optimism, noting that “lawmakers are getting closer” to consensus, though issues like COLAs and uniform wage floors remain unresolved.

A Long Road Still Ahead

Marc Stier, head of a progressive policy group in Pennsylvania, summarized the public sentiment: “We’ve been talking this to death. There’s not much more to say.” He believes that the final outcome may hinge on how hard the governor pushes for the bill.

With public pressure mounting, cost-of-living continuing to rise, and economic inequality still a pressing issue, the passage of this bill in the state House may signal a turning point. Whether the Senate follows remains to be seen — but for many low-wage workers across the state, hope for change is closer than it’s been in years.