NORFOLK, Va. — People making minimum wage will see more cash in their paychecks in the new year.
Starting in January, the minimum wage in Virginia will bump up to $12 an hour; it currently sits at $11 an hour.
The raise is part of a law passed under former Gov. Ralph Northam to raise the minimum wage to $15 an hour by 2026.
But the minimum wage will stay at $12 after 2023 unless additional increases are approved by lawmakers.
Since the COVID-19 pandemic, some businesses are still struggling with staffing shortages. However, some business owners are hoping this raise will draw more people into the industry.
Michael Mauch, the owner of Harvest in Virginia Beach, said while his employees already make more than $12 an hour, the raise could take a hit on other businesses and customers
"Obviously, something that we’ve known about, but it still takes a bite out of anything and everything that we’ve worked hard to try and accomplish through COVID, for sure," Mauch said.
The $7.25 federal minimum wage hasn’t changed since 2009.
But the minimum wage increase isn't the only change you can expect in the new year.
Your grocery bill will be a tad cheaper! Starting January 1, Virginians will no longer see a 1.5% tax at the register when buying groceries. That's a $1.50 saved for every $100 spent.
It's a promise Gov. Glenn Youngkin made on the campaign trail. He said it’s part of his administration’s plan to cut taxes in the Commonwealth.