Effective January 1, 2018, the minimum wage for federal contractors working on or in connection with contracts covered by Executive Order 13658 will be $10.35/ hour. The announcement was made via posting in the federal register on September 15, 2017. The wage rate for tipped employees will also increase to $7.25/hour.

This is the third increase to the minimum wage under the Executive Order which first went into effect January 1, 2015. At that time the minimum wage was set at $10.10/hour. In 2016, the rate increased to $10.15/hour. The current rate, which went into effective January 1, 2017, is $10.20/hour. Pursuant to the terms of the Executive Order, the U.S. Secretary of Labor reviews the rate on an annual basis to determine whether to increase the wage rate.