Minimum wage in Santa Monica, 2016–2026
- Businesses with 26+ employees
$18.47 an hour1
Businesses with 26 or more employees. Since Jul 1, 2026.
- Businesses with 25 or fewer
$18.47 an hour1
Businesses with 25 or fewer employees. Since Jul 1, 2026.
- Hotel workers
$25 an hour1
Hotels and businesses operating on hotel property; the rate matches the City of Los Angeles hotel worker wage (Santa Monica Municipal Code 4.63.015(b)(2)). Since Jul 1, 2026.
- Next adjustment
Jul 1, 20271
Each July 1 the general rate rises by the CPI-W for the Los Angeles area; the city posts the new rate around January 1. Not announced by Nov 3, 2026.
- How it is adjusted
Adjusted each July 1 by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los Angeles area.1
- California minimum wage
$16.90 an hour2
The state rate; Santa Monica's own rate applies where it is higher.
The Santa Monica minimum wage for businesses with 26+ employees rose from $10.50 in 2016 to $18.47 in 2026, $1.57 above California's $16.90
Line chart of the Santa Monica minimum wage for businesses with 26+ employees against California's: $10.50 in 2016, $12 in 2017, $13.25 in 2018, $14.25 in 2019, $15 in 2020, $15 in 2021, $15.96 in 2022, $16.90 in 2023, $17.27 in 2024, $17.81 in 2025, and $18.47 in 2026. California: $10 in 2016, $10 in 2017, $11 in 2018, $12 in 2019, $12 in 2020, $13 in 2021, $14 in 2022, $15.50 in 2023, $16 in 202
What a full-time minimum-wage employee costs a businesses with 25 or fewer in Santa Monica
At $18.47 an hour (the rate for businesses with 25 or fewer) for 40 hours a week, a new employer with 10 staff pays $38,418 in wages and $4,046 on top (10.5%) in federal and California payroll taxes and workers' comp.
- Wages (2,080 paid hours a year)
- $38,418
- Social Security (employer share)6.2%3 of $38,418
- $2,382
- Medicare (employer share)1.45%4 of $38,418
- $557
- FUTA (with California's potential credit reduction)2.1% (after the full 5.4% state credit)5 (with a 1.5% potential credit reduction)6 of $7,0005
- $147
- Workers' compensation (benchmark index rate, 2024 study)$1.86 per $100 of payroll9
- $715
- Total a year
- $42,463
If you also offer single health coverage, the average employer here pays about $7,647 more a year: a $9,162 average premium10 less $1,515 paid by the employee10.
Change the inputs in the California employer cost calculator
Frequently asked questions
What is the minimum wage in Santa Monica in 2026?
$18.47 an hour for businesses with 26+ employees (businesses with 26 or more employees), $18.47 an hour for businesses with 25 or fewer (businesses with 25 or fewer employees), and $25 an hour for hotel workers (hotels and businesses operating on hotel property), since Jul 1, 2026.
What will the Santa Monica minimum wage be in 2027?
Not announced by Nov 3, 2026. Each July 1 the general rate rises by the CPI-W for the Los Angeles area; the city posts the new rate around January 1.
Which Santa Monica minimum wage applies to my business?
$18.47 an hour for businesses with 26 or more employees and businesses with 25 or fewer employees; $25 an hour for hotels and businesses operating on hotel property, since Jul 1, 2026.
How much does a minimum-wage employee cost an employer in Santa Monica?
About $42,463 a year full time at $18.47 for an employer with 10 staff: $38,418 of pay plus $3,331 in payroll taxes and $715 in workers' comp, before any health coverage.
Is the Santa Monica minimum wage higher than California's?
Yes: even its lowest rate, $18.47, is above California's $16.90 an hour; businesses with 26+ employees pay $1.57 more.
More minimum wage and employer cost pages
Sources
The 11 pages this page's facts come from. The date beside each is our last check of the facts taken from it (the oldest, when they differ). The numbers beside the figures above link here.
Quotes from the sources
- City of Santa Monica santamonica.gov/minimum-wage“Minimum Wage Rates (as of July 1 each year) … 2026 $18.47 $18.47 $25.00” “The minimum wage for hotels and businesses operating on hotel property is $22.50 effective September 8, 2025 and will increase to $25.00 per hour effective July 1, 2026. Pursuant to Santa Monica Municipal Code Section 4.63.015(b)(2), the hourly minimum wage for hotel workers in the City shall match the hourly wage set for hotel workers in the City of Los Angeles.” “Minimum Wage Rates (as of July 1 each year) … This amount increases annually by the published Consumer Price Index for Urban Wage Earners and Clerical Works (CPI-W) for the Los Angeles metropolitan area (LA-Riverside-Orange County, CA) published by the Bureau of Labor Statistics. Santa Monica posts the new rates annually on or near January” “Minimum Wage Rates (as of July 1 each year) Year Businesses with 26 or more employees* Businesses with 25 or fewer employees* All Hotels** 2016 $10.50 $10.00 (CA State Minimum Wage) $13.25” “Minimum Wage Rates (as of July 1 each year) … 2017 $12.00 $10.50 $15.66” “Minimum Wage Rates (as of July 1 each year) … 2018 $13.25 $12.00 $16.10” “Minimum Wage Rates (as of July 1 each year) … 2019 $14.25 $13.25 $16.63” “Minimum Wage Rates (as of July 1 each year) … 2020 $15.00 $14.25 $17.13” “Minimum Wage Rates (as of July 1 each year) … 2021 $15.00 $15.00 $17.64” “Minimum Wage Rates (as of July 1 each year) … 2022 $15.96 $15.96 $18.17” “Minimum Wage Rates (as of July 1 each year) … 2023 $16.90 $16.90 $19.73” “Minimum Wage Rates (as of July 1 each year) … 2024 $17.27 $17.27 $20.32” “Minimum Wage Rates (as of July 1 each year) … 2025 $17.81 $17.81 $22.50” “The minimum wage for hotels and businesses operating on hotel property is $22.50 effective September 8, 2025”
- California Department of Industrial Relations dir.ca.gov/dlse/faq_minimumwage.htm“Effective January 1, 2026, the minimum wage is $16.90 per hour for all employers, not otherwise covered by a higher minimum wage specific to an industry or a locality.”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/docs/potential_credit_states_2026.xlsx“Potential 2026 Federal Unemployment Tax Act (FUTA) Credit Reductions … California … Credit Reduction Due to … Outstanding Advance … California … 1.5%”
- California Employment Development Department edd.ca.gov/en/payroll_taxes/rates_and_withholding“New employers are assigned a 3.4 percent UI rate for two to three years.” “The ETT rate for 2026 is 0.1 percent. The ETT taxable wage limit is $7,000 per employee, per calendar year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“CA … $7,000”
- Oregon Department of Consumer and Business Services oregon.gov/DCBS/DCBSPubs/reports/general/prem-rpt/24-2083.pdf“index rate, expressed in terms of dollars per $100 of payroll. … Table 1. Workers’ compensation premium rate ranking … rank State Index rate Percent of study median Effective date … 4 3 California 1.86 170% Sept. 1, 2023”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … California 9,162 7,843 9,730 9,066 8,879 9,330 9,149 9,164” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … California 1,515 1,290 * 2,325 1,262 1,734 1,397 1,602 1,499”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“California 1.65(b) 1.65(b) 1.65(b) 2.00 2.90 2.90 3.35 … California 3.35 4.25 4.25 4.25 4.25 4.75 5.15 … California 5.75 6.25 6.75 6.75 6.75 6.75 6.75 … California 7.50 8.00 8.00 8.00 8.00 8.00 8.00 … California 9.00 9.00 10.00 10.00 11.00 12.00 … California 12.00 13.00 14.00 15.50 16.00”