AUSTIN (KXAN) — The Austin City Council voted Thursday to raise the minimum wage for city employees to $22 an hour.
The council approved the pay boost resolution intended to fill vacant city jobs and remain “competitive.” It’s not a done deal, however. The resolution directs City Manager Spencer Cronk to “develop a plan and timeline” for the increase from $15 to $22, a city spokesperson said.
If the increase isn’t deemed feasible in the 2023 fiscal year budget, then Cronk should raise the hourly rate, “by the most significant amount possible.”
Cronk plans to release a proposed 2023 budget in July, the city said.
According to the City of Austin, 18% of its budgeted positions are open.
District 2 City Councilwoman Vanessa Fuentes proposed the resolution, saying the city has to “to remain competitive and ensure that we’re attracting and retaining talented employees.”
Cronk previously estimated that the increase could cost the city between $18.2 and $22.8 million.
For full-time employees, a $22 hourly wage would equal an annual salary of just over $45,000.
“Providing a living wage has been a continued priority for our stakeholders and our city staff,” the spokesperson said. “The recovery from the pandemic and unprecedented rising costs of living have emphasized the need to accelerate the timeline to increase the living wage.”