Detroit to Raise Minimum Wage for City Employees to $21.45 per Hour This Summer

Mayor Mary Sheffield unveiled plans on March 9 to bump the minimum wage to $21.45 per hour for full-time Detroit employees. Around 900 workers would see bigger paychecks. The change kicks in during July's first full pay period.

Sheffield shared this during her first budget pitch to the Detroit City Council. That same afternoon, she inked an executive order. It tells the human resources department to tally how many full-time employees make less than $21.45 hourly. They've got 60 days. City Council has to sign off on the wage hike.

"My hope is that this increase in salaries, and setting the standard for livable wage, will allow all of our city of Detroit employees to afford the cost − the high cost − of going to get groceries, of basic things like gas, providing for their families, so that they are able to enjoy their quality of life," said Sheffield, according to Detroit Free Press.

This wage matches what MIT's Living Wage calculator says an adult with no kids needs in Wayne County. Michigan's state minimum? Just $13.73.

About 9% of workers make below $21.45, the executive order shows. Human Resources Director Denise Starr said some will gain up to $5 more each hour based on what they earn now. Seventy percent of those affected live in the city.

Multiple divisions will feel the impact. Buildings, Safety Engineering, and Environmental Department will see changes. So will the Department of Public Works, the General Services Department, and the Detroit Department of Transportation.

GSD Director Crystal Perkins said roughly 34% of her department stands to benefit. Some workers juggle two or three jobs just to scrape by. A few face losing their homes, she explained. DPW Director Ron Brundidge said the boost would help about 150 workers—29% of his staff.

"We have a very high turnover in these types of positions and this is going to help us to attract and retain and, hopefully, also help the families," Starr said.

Thalese Mcclendon works as an animal care technician for Animal Control. She makes about $15 hourly. She's been without a home since last July and stays in a hotel. The raise would help her grow her tutoring business and bring her children back.

"This will help with me getting back stable and back on my feet," she said.

ShaDawn Adams coordinates programs at a recreation center for Parks and Recreation. She works two jobs. "I'm looking forward to seeing some changes," she said during the news conference.

The 2027 proposed budget reserves $7.9 million for the wage increases. Chief Financial Officer Tanya Stoudemire said this money will appear in the non-departmental budget. She said they budgeted for all positions, not just ones with people in them. That gives them extra breathing room.