The elected mayor of the city of Santa Fe, Michael Garcia, who currently serves as the councilor for District 2, has introduced a new amendment through which the minimum wage for citizens will increase starting January 1, 2026. With this new measure, it is expected that the figure will rise to $17.50 per hour. So far, everything seems like a normal measure, but the city of Santa Fe has changed the usual parameters for making this type of calculation.
The associate dean of teaching and learning and associate professor at the University of New Mexico, Reilly S. White, explained that this is the first time that both the CPI or Consumer Price Index and housing prices are taken into consideration. A new ordinance was also put on the table that aimed to change the terminology of the new law from ‘living wage,’ as originally proposed, or ‘minimum wage.’ It is expected that by 2027, all wages that today are at a minimum of $15 will reach $17.50 per hour.
Minimum wage in Santa Fe
Due to inflation, the cost of living in general is usually higher than the minimum figures established for the minimum wage. It is the authorities’ responsibility to adjust this difference, and that is what the Santa Fe City Council has done. They recently voted on a proposal presented by the elected mayor, Michael Garcia, through which the municipal minimum wage would increase from $15 per hour to $17.50. The idea is that by the year 2027, all wages will have been adjusted, taking effect on January 1, 2026.
This new law makes a difference
Although it seems to be a routine measure, the truth is that Santa Fe has changed the way calculations are made. According to the associate dean of teaching and learning and associate professor at the University of New Mexico, Reilly S. White, Santa Fe is the first city to make this type of modification. It involves taking into account not only the Consumer Price Index (CPI), but also the price of housing.
It makes perfect sense that the minimum wage in a municipality not only responds to the CPI, as usual, but also takes into account the monthly cost of housing for citizens. In addition, it was also proposed to change the term known until now to better reflect reality: it was proposed to use the term “living wage,” as originally proposed, or “minimum wage”.
Measures of the new mayor
Also serving as a councilor for District 2, Mayor García argued that it made no sense for the minimum wage to bear that name, when it was more of a ‘living wage.’ Although the change was ultimately not approved, García expressed satisfaction with the new measure and stated, “it is a step in the right direction”.
How was the minimum wage calculated until now?
The city of Santa Fe, like the rest of the states, only took the CPI into account until now. To calculate the minimum wage, it was based on the total 12-month increase of 2.76% in the Consumer Price Index for the Western Region for urban employees and office workers.
With these calculations, the result for 2024 was $14.60 per hour as the minimum wage. However, under the new measure, the minimum wage will rise to $17.50 per hour by 2027, compared to the current $15.