PROVIDENCE – Rhode Island had the 13th-highest minimum wage relative to the cost of living in the United States in 2020, according to a report from Self Financial Inc.
The adjusted minimum wage in the report, $11.35 per hour, was based on the state having a cost of living 1.3% higher than the national average. The state’s actual minimum wage is $11.50 per hour, higher than the national minimum wage of $7.25 per hour. Rhode Island’s minimum wage was last raised by $1 in Oct. 2020.
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The report was based on data from state government websites and the U.S. Bureau of Economic Analysis’ Regional Price Parities report. The adjusted minimum wage was calculated by dividing a state’s actual minimum wage by its corresponding RPP.
The report also noted that the federal minimum wage is worth 43% less than its peak value in 1968. The federal minimum wage was last raised in 2009.
Arkansas had the highest adjusted minimum wage in the report, at $12.99 per hour, with an actual minimum wage of $11 per hour.
In New England, Rhode Island had the second-lowest adjusted minimum wage among all six states, only ahead of New Hampshire, which ranked last in the country.
Other New England minimum wages adjusted for the cost of living:
- Connecticut: No. 5 in the country at $12.38 per hour, adjusted down from a real rate of $13 per hour.
- Maine: No. 6 in the country at $12.24 per hour, adjusted up from an actual rate of $12.15 per hour.
- Massachusetts: No. 7 in the country at $12.23 per hour, adjusted down from an actual rate of $13.50 per hour.
- Vermont: No. 12 in the U.S. at $11.40 per hour, adjusted down from an actual rate of $11.75 per hour.
- New Hampshire: Last in the nation at $6.81 per hour, adjusted down from an actual rate of $7.25 per hour.
The full report may be found online.
