(The Center Square) – Virginia lawmakers are moving closer to raising the state’s minimum wage to $15 an hour, but the proposal is not final yet.
House Bill 1, which would gradually increase Virginia’s minimum wage to $15 by Jan. 1, 2028, has cleared the House of Delegates and is now advancing through the Senate. The bill passed the House 64-34 Tuesday and was formally sent to the Senate the following day.
As of Thursday, the Senate has not voted on the measure. Instead, the bill has been referred to the Senate Commerce and Labor Committee.
Under HB1, the state’s minimum wage would rise from its adjusted level of $12.77 an hour to $13.75 beginning Jan. 1, 2027, followed by an increase to $15 an hour on Jan. 1, 2028. Starting in 2029, the wage would be adjusted annually based on changes in the Consumer Price Index.
A companion measure, Senate Bill 1, mirrors the House proposal. That bill was reported out of the Senate Commerce and Labor Committee earlier this week and referred to the Senate Finance and Appropriations Committee, where it remains under review.
Both bills include fiscal impacts for the commonwealth. According to fiscal impact statements prepared by the Department of Planning and Budget, higher minimum wages would increase payroll costs across multiple state agencies.
Analysts estimate the bill would add about $547,000 in general fund costs and $489,000 in nongeneral fund costs in fiscal year 2027. Once the minimum wage reaches $15 an hour in fiscal year 2028, annual costs rise to about $14 million from the general fund and $14.6 million from nongeneral funds, with higher costs projected in later years as wages continue to adjust.
Virginia ended the most recent fiscal year with about $2.7 billion in general fund surplus, according to state budget officials.
The proposals come as lawmakers debate how best to address rising costs for workers while also weighing long-term budget impacts on the state. Even if both chambers ultimately approve identical versions of the bill, it would still require action by the governor before becoming law.
