San Francisco Minimum Wage 2025: The Highest Pay Rates Explained for Bay Area Workers

San Francisco boasts one of the highest minimum wages in the United States, reflecting the city’s commitment to supporting workers in an expensive urban environment. With constant changes due to inflation and city policies, it’s important for both employees and businesses to stay updated on the current wage rates, how they are calculated, and what this means for the city’s workforce.

Understanding the Current Minimum Wage in San Francisco

As of July 1, 2025, the San Francisco minimum wage is set at $19.18 per hour for all employees, regardless of age, part-time status, or tipped positions. This is significantly above both the federal minimum wage of $7.25 and the California state minimum wage, which is $16.50 per hour as of January 2025.​

This high wage reflects San Francisco’s ongoing efforts to address the high cost of living and to help workers afford basics like rent, food, and transportation.​

How San Francisco Sets Its Minimum Wage

San Francisco uses a unique approach called a “local minimum wage ordinance,” adopted after a 2003 voter initiative. Since July 1, 2018, SF’s minimum wage rate has not only been ahead of national and state figures but also automatically increases every July 1 based on changes in the Consumer Price Index (CPI). This means the minimum wage rises with inflation, keeping pace with local economic realities.​

Key features of SF’s wage policy:

• Applies to nearly all employees who work at least 2 hours per week within city boundaries

• Updated annually each July according to inflation

• No distinction for tipped workers—everyone receives the full rate

• Some government-supported employees have a different rate (e.g., $16.97 as of July 2025)​

Historical Minimum Wage Rates in San Francisco

San Francisco’s minimum wage has increased steadily throughout the years to address rising living costs and economic trends. Here’s a snapshot of the progression:

The annual increases help ensure that minimum wage workers don’t lose purchasing power as living costs change.

Who Must Follow San Francisco’s Minimum Wage Ordinance?

San Francisco’s minimum wage law affects almost every business operating within the city, large or small.

• Employers: All for-profit, non-profit, and public employers with employees working at least two hours in SF per week are covered.

• Employees: Both adult and minor workers, part-time or full-time, seasonal staff, and temporary workers are eligible for the minimum wage.​

However, certain government-supported employees may be subject to a slightly different minimum wage rate. This distinction is clarified annually by the city’s Office of Labor Standards Enforcement.​

Comparison with Nearby Cities and California

San Francisco’s rate is the highest in the region, but several cities in the Bay Area also have their own higher minimum wage laws:

This reflects a trend across California for urban areas to set their own standards above the state level, acknowledging their higher cost of living.

Compliance, Enforcement, and Worker Rights

Employers in San Francisco must prominently display the current minimum wage poster at all job sites. Failure to pay the correct wage can result in complaints and legal action, with back pay, interest, and additional penalties as enforcement tools.

The minimum wage is strictly enforced by the Office of Labor Standards Enforcement (OLSE). Employees who believe they are being underpaid can file a complaint and remain protected from retaliation under city law.​

Impact on Workers and the City

For workers, San Francisco’s high wage floor is a crucial support amidst the nation’s most expensive housing market. Some benefits of the city’s approach include:

• Improved living standards for low-wage workers

• A buffer against inflation for hourly employees

• Increased purchasing power that can boost the local economy

However, the high minimum wage also presents challenges for small businesses, many of which must find ways to balance increased payroll costs.​

Special Cases: Minimum Compensation Ordinance

In addition to the minimum wage, San Francisco has special compensation requirements for employees doing business with the city or certain types of employers. As of July 1, 2025, these rates are even higher:

• For-Profit City Contractors: $21.54/hour

• Non-Profit Contractors: $21.55/hour (set to rise to $23.00 in 2026)

• Public Entities: $22.50/hour, increasing to $23.00 in 2026​

These rates typically apply to workers on city contracts rather than general private-sector employees.

What’s Next for San Francisco’s Minimum Wage?

Looking forward, San Francisco’s minimum wage will continue to rise each July in line with inflation. This annual adjustment is built into local law to ensure the wage rate keeps up with the city’s high cost of living.​

FAQs About San Francisco Minimum Wage

1. What is the current San Francisco minimum wage?
As of July 1, 2025, it is $19.18 per hour for all employees.

2. When does the minimum wage increase in San Francisco?
The rate increases each July 1, based on annual changes in the Consumer Price Index.

3. Does the minimum wage apply to tipped workers?
Yes, all workers—including tipped employees—must receive at least the city’s standard minimum wage.

4. What should I do if I am not being paid the minimum wage?
You can file a complaint with the Office of Labor Standards Enforcement, and you are protected against employer retaliation.

5. How does San Francisco’s minimum wage compare to California’s?
San Francisco’s rate is significantly higher than California’s state minimum wage due to its unique ordinance and higher cost of living.