California’s minimum wage for all employers will rise to $15.50 an hour in January, advisors to Gov. Gavin Newsom said Thursday, the first time that rising inflation has triggered a provision of a  6-year-old state law governing automatic pay increases.

The announcement came one day before Newsom unveils a revised state budget plan, a new spending proposal for state government that relies on an updated economic forecast and one that will offer rental assistance and cash rebates to struggling Californians.

Keely  Martin Bosler, the governor’s budget director, said the wage increase will help low-income families struggling with the rapid rise in prices for a wide variety of items.

“They have a huge impact to those families that are living off of those lower wages and their ability to cover the cost of goods,” she said.

The state’s minimum wage for large employers is currently $15 an hour, with employers that have fewer than 26 workers paying $14 an hour. Both pay levels went up in January, the presumed final step envisioned by a 2016 state law that gradually increased wages — in most years, by one dollar an hour. Small businesses were given more time to raise their pay.

Bosler said all businesses, regardless of size, will be required to raise their base salaries based on the state’s projection that the consumer price index will have risen by 7.6% over a two-year period that ends in July. The 2016 wage law signed by then-Gov. Jerry Brown requires that any inflation growth above 7% triggers an even higher minimum wage.

“If high inflation sustains” beyond this summer, Bosler said, “it’s possible that there will be another jump by another 50 cents in the future years.”

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