Maine’s New Minimum Wage: Is It Enough?

Does more money mean eating better and having a better life with more family bonding? Or is the 8% rise eaten by the skyrocketing rise in heating oil and electricity?

C-G-wintertruck-WEB and Maine map.Photo bythe author PowerPoint design creation.

NOTE: This is for information purposes and should not be considered legal advice.

On January 1, 2023, Maine's minimum wage increased to $13.80 per hour. While this is a welcome improvement for low-wage workers, it raises the question: is it enough?

Service employees who work under the "tip wage" will now receive a minimum $6.90 per hour.—Fox23 Maine.

Maine's new minimum wage: A step in the right direction?

The cost of living in Maine has been steadily increasing, particularly in the past year. According to a National Low Income Housing Coalition report, the average fair market rent for a two-bedroom apartment in Maine is $1,328 per month. This represents an increase of 12% from the previous year.

In addition, heating oil prices have increased by 12% or more in the past year, making it increasingly difficult for low-wage workers to keep up with their basic living expenses. And we all know about the price-gouging by some electric companies in Maine.

Furthermore, the overall inflation rate in the United States has been hovering around 6% to 7%. The annual minimum wage raise already puts workers 12 months behind inflation. This means that the cost of goods and services is rising faster than the minimum wage. This has a particularly strong impact on low-income workers who are already struggling to make ends meet.

The rising cost of living in Maine: Challenges for low-income workers

While the increase in Maine's minimum wage is a step in the right direction, more is needed to keep up with the rising cost of living. For example, Maine's full-time minimum wage worker will earn $26,000 per year before taxes. After taxes, this amount is much lower.

Many workers earning the minimum wage spend more than 50% of their income on housing alone, leaving little left over for other basic expenses like childcare, heat, food, transportation, and healthcare.

Addressing income inequality in Maine: Solutions and next steps

There are several potential solutions to this problem. One option is to continue raising the minimum wage through state legislation or federal action. These actions would help ensure that low-wage workers can keep up with the rising cost of living and avoid falling deeper into poverty.

Maine law, amended by citizen's referendum in 2016, requires annual adjustments to the minimum wage based on the cost-of-living index (CPI-W) for the Northeast Region.—Maine Department of Labor.

Another potential solution is to provide additional support for low-income families, such as increasing funding for affordable housing, expanding access to healthcare, and offering tax credits for low-income workers. These measures could offset the impact of rising costs and help ensure that all Mainers can lead healthy and productive lives.

In addition, it is essential to acknowledge the broader economic and societal factors that contribute to income inequality and poverty. These factors include addressing issues like racial and gender discrimination in the workplace, improving access to education and job training programs, and addressing systemic issues like the wealth gap and lack of affordable healthcare.

While Maine's new minimum wage of $13.80 per hour is nearly double the national minimum wage of $7.25 and a welcome improvement for low-wage workers, it may not be enough to keep up with the rising cost of living.

As a society, we must continue to work towards solutions that promote economic justice and ensure that all Mainers can thrive, regardless of their income level. These measures could include raising the minimum wage, providing additional support for low-income families, and addressing broader societal issues contributing to income inequality and poverty.

Other articles by this author:

Is the current worker shortage laziness or common sense?

Can Maine handle its migration crisis economically?

Is My Kid a Druggie? Spotting the Side Effects and Symptoms of Drug Use

Want to read local news stories for free?

Sign up using my referral link.

If you’re interested in making a side hustle from writing about local news, sign up using my referral link, and we can both make more. Don’t forget to use your link when you write.

About the author

Stephen Dalton is a native of Old Town, ME, and a retired US Army First Sergeant with a degree in journalism from the University of Maryland. He is a Certified US English Chicago Manual of Style Editor. Top Writer in Travel, Food, Fiction, Transportation, VR, NFL, Design, Creativity, Short Story, and a NewsBreak Community Voice Pro.