Colorado’s minimum wage to rise again in 2023

DENVER, Colo. (KRDO) -- Colorado's minimum wage is set to increase by more than a dollar in 2023. According to the Department of Labor and Employment Division of Labor Standards and Statistics (DLSS), the minimum wage will go from $12.56 per hour to $13.65 an hour, an 8.68% increase.

This increase is thanks to a voter-approved mandate in the Colorado Constitution that requires annually adjusting the minimum wage for inflation.

According to the state, the adjustments are based on the Consumer Price Index (CPI) in the Denver-Aurora-Lakewood Metropolitan Statistical Area, which is calculated and issued by the federal Bureau of Labor Statistics.

Local governments are still able to set a higher minimum wage than the state standard.

DLSS issues minimum wage adjustments as a part of its annual wage law rulemaking process and pursuant to its mandate under the Colorado Constitution. The state said advance notice helps employers and employees plan their finances.

The new minimum wage will take effect on January 1, 2023.