Fed Contract Workers Get 14.05 Bucks Starting 2027
Published Date: 10/8/2026
Notice
Summary
Starting January 6, 2027, workers on certain federal contracts will see their minimum wage rise to $14.05 per hour, with tipped workers earning at least $9.85 per hour. This change affects contracts made between 2015 and early 2022 that weren’t renewed after January 30, 2022. It’s a solid pay boost for folks working on government jobs, making sure wages keep up with the times!
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Federal contract minimum wage rises to $14.05
If you work on or in connection with certain federal contracts awarded between January 1, 2015 and January 29, 2022 (and not renewed or extended on or after January 30, 2022), your minimum wage generally increases to $14.05 per hour beginning January 6, 2027. The notice states the prior Executive Order 13658 rate was $13.65 per hour before this update.
Tipped federal contract workers get $9.85 cash wage
If you are a tipped employee performing on or in connection with covered federal contracts described above, the required minimum cash wage increases to $9.85 per hour beginning January 6, 2027. The notice explains this cash wage is 70 percent of the full Executive Order 13658 minimum wage and rounds to the nearest $0.05; the prior cash wage was $9.55 per hour.
Contractors must pay the higher rates starting Jan 6, 2027
If you are a contractor on federal contracts entered between January 1, 2015 and January 29, 2022 that were not renewed or extended on or after January 30, 2022, you will be required to pay the updated Executive Order 13658 minimum wage of $14.05 per hour and the tipped cash wage of $9.85 per hour beginning January 6, 2027. The notice ties applicability to contracts subject to the Davis-Bacon Act and the Service Contract Act awarded in that date range.
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