Santa Fe City Council Sets New Minimum Wage at $17.50 by 2027
Santa Fe, Friday, 14 November 2025.
Santa Fe’s minimum wage will rise to $17.50 per hour by 2027, with future increases tied to housing costs, in a move to support low-wage workers amid rising living expenses.
Impact on Local Economy
The decision to increase Santa Fe’s minimum wage is expected to have a considerable impact on the local economy. The current minimum wage in the city stands at $15 per hour, significantly above New Mexico’s state minimum of $12 per hour and the federal minimum of $7.25 per hour [1][2][3]. The increase to $17.50 by 2027, approved by the Santa Fe City Council on November 12, 2025, will provide full-time workers with an additional $5,200 annually [1][2]. This measure is seen as a response to the rising cost of living in Santa Fe, where the average apartment rent is $2,500, $800 more than in Albuquerque, and the median home price is $477,000, which is $100,000 above the national average [3].
Challenges for Small Businesses
While the wage increase aims to alleviate financial pressures on low-wage workers, some small businesses express concern over its economic implications. Many worry about the potential need to adjust wages across all employment levels, which could lead to increased operational costs [4]. Bridget Dixson from the Santa Fe Chamber of Commerce highlighted that these changes might impact staffing, benefits, and long-term stability for local businesses [5]. Despite these concerns, the council believes the local economy can absorb the increase as many businesses already pay above the proposed minimum [3].
Public Reception and Future Outlook
Public reaction to the wage increase has been mixed, with a substantial portion of Santa Fe residents supporting the proposal, as indicated by a recent city survey [5]. Advocates from Somos un Pueblo Unido emphasize that the increase is crucial for ensuring that workers can live with dignity amid rising costs [4]. The measure also includes a provision to tie future wage increases to housing costs, potentially raising the minimum wage to $21 by 2035 [3]. This approach reflects a broader strategy to address economic inequalities and ensure that wage growth keeps pace with living expenses.
Conclusion
The Santa Fe City Council’s decision to raise the minimum wage represents a significant step towards addressing economic disparities in the city. By tying future wage increases to housing costs, the policy aims to provide long-term economic stability for workers. However, the success of this measure will depend on its implementation and the ability of businesses to adapt to these changes without compromising their financial health. As Santa Fe navigates these economic adjustments, the broader implications for its community and economy will continue to unfold.