New York state’s minimum wage will get another bump starting Dec. 31.

The New York State Department of Labor announced the state’s $15 minimum wage phase-in will continue, with the rate rising to $15 per hour on Long Island and in Westchester, matching the $15 hourly minimum already set in New York City. The Director of the Division of Budget, together with the Commissioner of Labor, determined that the minimum wage should rise to $13.20 per hour in the rest of the state based upon economic factors and indices.

Currently in upstate, the rate is $12.50 per hour.

“Companies, particularly those that employ low-wage workers, are already raising wages and in some cases offering incentives to hire amid a labor-shortage that is showing no sign of abating, and it makes sense to raise the wage floor now and continue supporting New York’s families while providing a predictable path forward for businesses,” Labor Commissioner Roberta Reardon said.

“With today’s action we are continuing the work of building back with equity and justice.”

The report produced by the Division of the Budget is required by the minimum wage statute to review the state of the economy and determine whether increases move forward as scheduled or should be delayed.

For 2021, the statute also requires the Director of the Division of Budget evaluate economic factors and determine, with the Commissioner of Labor, the rate of minimum wage increases outside of New York City, Long Island and Westchester.

As the report describes, the minimum wage in that region is determined to increase based on the Consumer Price Index for all Urban Wage Earners and Clerical Workers as well as nonfarm business labor productivity, enabling low-wage workers to continue to afford the same basket of goods and services and then some based on rising productivity.