Boston Contractor Minimum Wage Rises to $18 in 2027

The Boston City Council on July 9 approved the Contractor Wage Standards Ordinance, which raises the minimum hourly rate paid to workers on city contracts from the current level to $18 starting January 1, 2027. The measure applies to employees of companies providing services such as building maintenance, waste collection and security at municipal facilities across all neighborhoods.

City records show the ordinance updates language first adopted in 2018 and ties the rate to the consumer price index for the Boston metropolitan area. Council members reviewed procurement data from the past two fiscal years before the final vote, which passed 9 to 4.

Vote Record and Funding Source

The ordinance draws its implementation costs from the existing FY2027 general fund allocation for contracted services, listed at $312 million in the budget adopted last month. No new taxes or fees are required under the legislation as written.

Workers covered by the change include those employed at libraries, community centers and administrative buildings in Dorchester, East Boston and Allston. Payroll reports submitted to the city’s Office of Workforce Development indicate that roughly 2,800 positions fall under city contracts each year.

Effects on Household Budgets

Residents who hold these jobs will receive the higher rate on their regular paychecks once the ordinance takes effect. Local advocates note that many of the positions are part-time or seasonal, so the actual increase per worker will vary by hours worked and contract length.

The city’s procurement office will begin including the new wage requirement in all requests for proposals issued after October 1. Contracts already signed will remain at their original rates until renewal or expiration.