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HOURLY WAGE INDEX

Let’s talk wages in Phoenix

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$13.85

What is the minimum wage in Phoenix?

The current minimum wage in Phoenix, Arizona is $13.85 per hour. This is higher than the federal minimum wage of $7.25 per hour, but lower than the minimum wage in some other major cities, such as San Francisco ($16.07 per hour) and New York City ($15.00 per hour). The minimum wage in Phoenix is adjusted annually based on the Consumer Price Index (CPI). The most recent increase was on January 1, 2023, when the minimum wage increased from $12.80 per hour to $13.85 per hour.

$18.85

What is the living wage in Phoenix?

A livable wage in Phoenix is estimated to be $18.85 per hour for a single adult and $30.70 per hour for a family of four. This means that a worker earning the minimum wage would need to work more than 40 hours per week to afford a basic standard of living. The number of workers in Phoenix earning minimum wage is estimated to be over 100,000. This number is likely to increase in the coming years as the cost of living continues to rise.

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

Short, easy to understand job descriptions
Mobile-friendliness
Quick communication
Streamlined interview stages

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We're here to help!

A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.