On April 27, 2021 President Biden signed an Executive Order that raised the minimum wage for federal contractors and tipped employees working on government contracts to $15 an hour. The increase in the minimum wage for contractors from $10.95 an hour goes into effect in January of 2022. Federal agencies must incorporate the $15 minimum wage into solicitations effective January 30, 2022 and effective March 30, 2022, all agencies must incorporate the $15 minimum wage into new contracts.  

President Obama previously increased the minimum wage for federal contractors back in 2015 by Executive Order to $10.95 an hour. The minimum wage for federal contractors was not increased while President Trump was in office. The Department of Labor and the Federal Acquisition Regulatory (FAR) Council will be issuing implementing regulations consistent with this Executive Order.