Minimum Wage Increase for Federal Government Contractors, Adjusting for Inflation

October 4, 2022
2 min read

Earlier this year, President Biden issued Executive Order 14026, which increased the minimum wage for employees of federal contractors to $15.

On September 29, 2022, the U.S. Department of Labor announced that the amended minimum wage for federal contractors will increase to $16.20 due to inflation. The increase will apply to Service Contract and Davis-Bacon and Related Act contracts, and will be in-effect on January 1, 2023.

This increase will also apply to tipped federal contractors covered by Executive Order 14026, whose minimum wage will increase to $13.75 per hour, up from $10.50.

Executive Order 14026, and its increase in the federal contractor employee minimum wage, applies to federal contracts initiated after January 30, 2022, and existing federal contracts that are renewed or extended after this date.

GSA National’s #GovCon experts are here to assist with any questions you may have regarding the wage increase and its application to your government contract(s). Please contact our team of SCA and DBRA subject matter specialists with any questions.

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