CHARLOTTESVILLE, Va. (CBS19 NEWS) -- Virginia is ringing in the new year with some significant changes, including an increase in the state’s minimum wage.

Effective January 1, 2025, the minimum wage will rise from $12.00 per hour to $12.41 per hour, benefiting workers across the state. The increase is part of a broader plan to reach $15 per hour by 2026. Virginia joins 20 other states in implementing wage hikes this year, offering workers a little more cash in their pockets.

City Council members expressed support for the increase but acknowledged that it is just one step in the right direction.

"Obviously, that is much better than the federal minimum wage of $7.25 per hour. So the wage increase will have positive economic benefits, giving workers more purchasing power and helping them better afford basic necessities," said Michael Payne, a Charlottesville City Council member.

The wage increase follows a 2020 piece of legislation that requires the gradual rise in minimum wage over several years. Council members emphasized that while the increase is a positive move, there is still much work to be done to address the challenges facing workers.

“There’s no question about it. This isn’t going to transform people’s lives,” said Payne. “People still won’t be able to afford basic necessities, and this won’t suddenly make housing affordable or relieve the burden of having to budget for groceries.”

Brian Pinkston, who has been concerned about low wages, also pointed to ongoing efforts by the city to address related issues such as housing and workforce development.

“All of the work that we’re doing around housing, job placement, job development and workforce development is crucial in helping those making lower wages,” he said.

Lawmakers stress that the increase is only the beginning of a larger effort to ensure fair compensation for Virginia’s workers. As the state continues to push toward its $15 per hour goal by 2026, leaders hope these incremental steps will eventually lead to improved financial stability for workers throughout the Commonwealth.

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