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

$0$5$10$15$20201620182020202220242026$16.90$18.47

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

Data: City of Santa Monica, California Department of Industrial Relations, and U.S. Department of Labor, Wage and Hour Division, as of Nov 3, 2026. CC BY 4.0 · LeadChange Group Hiring Cost Atlas. Santa Monica: the rate set on each step in the year, as City of Santa Monica published it. California: the U.S. DOL table to 2024 (2025 is not in it, so the line breaks there), then the rate in force when checked.
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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. LeadChange Group Hiring Cost Atlas; Data: City of Santa Monica, California Department of Industrial Relations, and U.S. Department of Labor, Wage and Hour Division, as of Nov 3, 2026. CC BY 4.0. https://leadchangegroup.com/guides/minimum-wage-by-state/california/santa-monica/#minimum-wage-history

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Rate steps on record
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: rate steps on record
EffectiveBusinesses with 26+ employeesBusinesses with 25 or fewerHotel workers
Jul 1, 2016$10.501—$13.251
Jul 1, 2017$121$10.501$15.661
Jul 1, 2018$13.251$121$16.101
Jul 1, 2019$14.251$13.251$16.631
Jul 1, 2020$151$14.251$17.131
Jul 1, 2021$151$151$17.641
Jul 1, 2022$15.961$15.961$18.171
Jul 1, 2023$16.901$16.901$19.731
Jul 1, 2024$17.271$17.271$20.321
Jul 1, 2025$17.811$17.811—
Sep 8, 2025——$22.501
Jul 1, 2026$18.471$18.471$251

Each rate from the day it took effect, as City of Santa Monica published it (“—”: no new rate for that group that day). Businesses with 25 or fewer employees in 2016: the city’s table gives California’s state rate, not a Santa Monica rate.

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
State unemployment insurance (new employer)3.4%7 of $7,0008
$238
Employment Training Tax0.1%7 of $7,0007
$7
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.

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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.

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
  1. 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”
  2. 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.”
  3. 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).”
  4. 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.”
  5. 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.”
  6. 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%”
  7. 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.”
  8. U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“CA … $7,000”
  9. 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”
  10. 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”
  11. 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”