President Joe Biden is moving to boost the hourly pay of hundreds of thousands of federal contractors.
Although he was unsuccessful in doing so in his Covid relief package, it seems as though the US President has now made it his mission to fulfill his promise.
Biden's presidential campaign initially promised a $15 federal minimum wage to those working on federal contracts.
After a failed attempt in recent months, he's now set to sign an executive order on Tuesday, April 27, which will require employers to pay the higher new wage to workers covered under a federal contract.
This comes as a hefty step-up from the current minimum wage for workers under federal contract, which stands at $10.95 per hour, the Daily Mail reports.
It was raised to $10.10 under former president Barack Obama in 2014 and later indexed to inflation.
The proposed raise won't take place immediately, giving federal agencies enough time to adjust to the new amount.
As reported by ABC News, the new minimum wage will need to be implemented in new contracts by March 30, 2022, as per Biden's executive order.
It's difficult to amend existing contracts, but wages can be changed when they are up for annual review.
A senior administration official said the higher wage would boost the pay for workers who are considered critical to federal government functions. Such workers include cleaning professionals and maintenance workers, and nursing assistants who care for the nation's veterans.
Food service workers are also included in the list, as they provide meals to military members in cafeterias.
What's more, laborers who build and repair federal infrastructure also benefit from the raise.
The Biden administration has promised that the higher minimum wage will not cost taxpayers by making federal contracts more costly.
A White House official said paying such a competitive wage ensures reduced turnover and lower recruitment. This then results in an increase in productivity, and effectively cuts any increased costs for taxpayers.
The official also said that Biden's Council of Economic Advisors reviewed the order and did not conclude that requiring a higher wage would lead to any job loss.
However, the order does not cover emergency paid leave at this moment in time, although Biden may announce plans to cover this in the future.