The Santa Monica minimum wage for 2027 has not yet been officially announced. The current rate — effective July 1, 2026 — is $18.47 per hour under the Santa Monica Minimum Wage Ordinance. The 2027 adjusted rate will be published in spring 2027 and take effect on July 1, 2027.
This page will be updated with the official 2027 rate as soon as Santa Monica releases it. Join our mailing list below — we send the update the day it drops.
- Current Rate (2026): $18.47/hr — effective July 1, 2026
- 2027 Rate: Not yet announced
- Expected Announcement: Spring 2027 (April-May)
- 2027 Effective Date: July 1, 2027
- This page updates when the official 2027 rate is published.
- Official Source: santamonica.gov
- Current rate details: Santa Monica Minimum Wage 2026 →
How the Santa Monica Minimum Wage Is Set Each Year
Santa Monica sets its local minimum wage by ordinance. Under the Santa Monica Minimum Wage Ordinance, the City reviews the wage floor annually and adjusts it based on the Los Angeles Area CPI published by the U.S. Bureau of Labor Statistics. The adjustment takes effect every July 1.
City staff calculate the percentage change in the Los Angeles Area CPI for the prior 12-month period, then apply that percentage to the current minimum wage to produce the new rate. The City typically publishes the new rate in April or May — giving employers roughly two months to update payroll before the July 1 effective date.
This mechanism means the Santa Monica rate will continue rising each year as long as area prices increase. For long-range labor cost planning, budgeting for an annual increase of 1.5–3% is reasonable based on recent CPI trends.
When Will the 2027 Rate Be Announced?
Based on the City's past practice, expect the 2027 minimum wage announcement in April or May 2027. The effective date will be July 1, 2027. We monitor Santa Monica's official minimum wage page and will update this page immediately when the 2027 rate is published.
Santa Monica Minimum Wage History
| Effective Date | Minimum Wage |
|---|---|
| Previous cycle (through June 30, 2026) | $17.81/hr |
| July 1, 2026 (current) | $18.47/hr |
| July 1, 2027 (pending) | TBD — we will post it here |
Payroll Changes on July 1 -- Are You Ready?
When Santa Monica's minimum wage changes on July 1, 2027, most payroll software won't update automatically. B&H manages payroll for Santa Monica businesses and handles every rate change — no action required on your end. Call for a free payroll evaluation.
Call 408-256-0339 — Free EvaluationWhy Track the 2027 Rate Early?
Searching for next year's minimum wage before the official announcement is a smart habit. Cities and the state typically publish the new rate 60–90 days before it takes effect — which can be tight if you have a large hourly workforce or multiple locations.
Business owners who track the rate change early can:
- Update job offer letters and employment agreements before the effective date
- Re-run labor cost projections for the coming year's budget
- Verify that tipped employees still meet the new floor on base pay alone
- Confirm your payroll provider will apply the new rate automatically — many do not
- Decide whether to spread wage increases across a broader team for equity
If you use B&H for payroll, you don't need to track this yourself — we handle every minimum wage update for every city in our service area and update your payroll settings before the effective date, at no additional charge.