article U.S. President Donald Trump said Tuesday that the Federal Minimum Wage will be raised to $16 an hour starting in 2021.
Trump made the announcement during a news conference at the White House, where he met with CEOs of major companies.
The president said he would make the hike permanent during his first 100 days in office.
The federal minimum wage is $7.25 an hour, with tipped workers paid $2.13.
Trump, who has previously called for a minimum wage hike, said the rise is necessary to support the needs of American workers.
“We cannot continue to have a system in which tens of millions of Americans are not able to earn a living wage, and we are not providing enough for our workers,” he said.
Trump announced the increase in an interview with CBS News on Tuesday, calling the minimum wage “a slap in the face to so many American workers.”
“You’re going to see some changes, but you’re going of course, the same wage, $15,” Trump said.
The Federal Reserve Board, which is expected to make a decision on the next round of interest rate increases, on Wednesday is expected give the president the green light to raise the federal minimum.
The increase would cost employers $1.8 billion a year in direct spending, according to the nonpartisan Economic Policy Institute.
The federal minimum wages are set by Congress.
If the increase is approved by Congress, it would apply to any employers that employ people over 15 years of age.
The minimum wage has risen by about 4.5 percent annually in the past three years, to $7 by 2020.
The rate was last raised in January, after President Barack Obama raised it to $10.10 an hour in 2016.