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Hourly Wage Index
Discover how your pay practices stack up against other regions, positions, and industries. 
HOURLY WAGE INDEX

Let’s talk wages in San Jose

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$17

What is the minimum wage in San Jose?

The current minimum wage in San Jose is $17.00 per hour. This is higher than the federal minimum wage of $7.25 per hour, and it is also higher than the state minimum wage of $15.50 per hour. The San Jose minimum wage has been increasing steadily in recent years, and it is expected to continue to increase in the future. The minimum wage in San Jose is significantly higher than the national average.

As of January 1, 2023, the national minimum wage is $7.25 per hour. This means that workers in San Jose earn about $9.75 more per hour than the national average. The San Jose minimum wage has increased by $1.80 per hour in the past year. This increase took effect on January 1, 2023. The previous increase was in January 2022, when the minimum wage was raised from $15.20 to $16.20 per hour. A livable wage in San Jose is estimated to be between $19 and $22 per hour. It is estimated that there are over 200,000 workers in San Jose who earn minimum wage or close to it. This includes workers in a variety of industries, such as retail, hospitality, and food service. The minimum wage in San Jose is significantly higher than the national average due to the high cost of living in the city. The minimum wage is expected to continue to increase in the future, as the cost of living continues to rise.

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$19

What is the living wage in San Jose?

A livable wage is the hourly wage that a worker needs to earn in order to afford basic necessities such as housing, food, transportation, and healthcare. The livable wage in San Jose is estimated to be between $19 and $22 per hour.

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
Resources

Learn more about hiring and
retaining the hourly workforce

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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.

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