Minimum wage should hit $21.25 within two years, nonprofits say

NEW YORK (PIX11) – With half of New Yorkers struggling to meet their basic needs, minimum wage should increase faster to hit $21.25 by 2026, according to two New York City non-profits.

Before the City Council’s meeting Tuesday, non-profits United Way of New York City and Fund for the City of New York will deliver their policy recommendations to tackle the city’s “affordability crisis” – all aimed at increasing income and alleviating the cost of living.

“Simply speaking, income inadequacy is a result of two factors: low incomes and high expenses,” the report reads.

One key tool will would be increasing minimum wage faster than Gov. Kathy Hochul’s proposed timeline, which would put New York City’s minimum wage at $17 by 2026.

This is particularly true of the human services sector, and should be supplemented by improved access to jobs and tax credits, according to the organizations.

A recent study by SmartAsset found that a single adult would need $138,570 a year to live comfortably in the city. 

“While the decision to increase and index minimum wage by New York State leadership is definitely in the right direction, we would have preferred a faster pace of raising the wage floor,” according to the report. 

A key part of the equation is affordable housing availability, the non-profit said. In 2023, the city’s housing vacancy hit its lowest level since 1968 – and it’s most bleak for apartments renting for under $2,400. 

To meet New Yorkers’ housing needs, lawmakers will need to address affordability in tandem with tenant protections and rent regulations – like expanding eviction protections, according to the nonprofits’ recommendations. 

The study takes on a slew of other issues, like childcare, healthcare and transit cost, recommending policies ranging from expanding transit cost relief to improving SNAP benefits. The policy ideas were informed by input from over 30 New York-based nonprofits.

“[New Yorkers] struggle to keep a roof over their heads, put food on the table or pay for childcare as they go to work. It is, thus, greatly imperative that the City administration undertake serious consideration of the proposed cuts… and not balance the budget on the backs of struggling New Yorkers,” the nonprofits said.