The Obama administration is raising the minimum wage to $9 an hour, from $7.25, in the latest step to increase the availability of healthcare coverage for low-wage workers.
The White House announced the change Tuesday, which means workers at the nation’s biggest employers will get paid $10 an hour instead of $7 an hour.
The change will take effect Oct. 1.
The minimum wage has been at $7 for nearly two years.
Obama also announced $500 million for the Department of Labor to expand the pool of people who can receive unemployment insurance.
The administration announced $400 million to extend the unemployment insurance program for five months, starting in October.
The unemployment rate has fallen from 13.4% in September to 10.7% this month.
The federal minimum wage went up to $7 in 2015.
It went up again in 2018 and 2019.
The Trump administration, however, is expected to eliminate the $7 minimum wage by Jan. 1, 2019.
It is unclear if the $5.15 federal minimum is going to remain at $6.25 an hour for a while, as President Donald Trump said Tuesday.
While the administration is rolling back minimum wage increases, it is still raising them at a steady rate, the Labor Department said.