Worker's two cents on minimum wage

Every little bit counts, but when you do the math, it’s really not that much different than before.”

Leslie Terrero, Greenland Deli & Grocery

Minimum wage workers in NYC, Long Island and Westchester are earning an extra pcoket change thanks to the state’s recent minimum wage increase which went into effect on Jan. 1.

Governor Kathy Hochul announced a $0.50 increase to the minimum wage, raising the hourly rate to $16.50.

Minimum wage workers in other parts of the state will earn $15.50 per hour, also a $0.50 increase from the previous wage, according to the state’s Department of Labor (NYSDOL).

A person working 40 hours a week at the new minimum wage will now earn $34,320 annually, up from the previous salary of $33,280 -- a $1,040 increase.

“Putting money back in your pockets has been the focus of my first three budgets, and that includes increasing the minimum wage for the lowest earners across the state,” Hochul said in a statement two weeks before the new minimum wage went into effect.

In NYC, a family’s share of rent should not exceed 40 percent of their monthly adjusted income, also known as the “40 percent rule,” according to NYC.gov. Meanwhile, individuals should not spend more than 30 percent of their income on rent, according to NerdWallet.

With the new minimum wage increase, an individual working at this rate would make about $2,640 a month.

However, when doing the math, 30 percent of that monthly gross income equals $792, a very low and rare amount for rent in NYC. Moreover, this figure doesn’t consider the possible cost of groceries, travel, childcare, health insurance and other expenses.

Hochul, however, views the minimum wage increase as a solution for those who earn the least and live hand-to-mouth.

“With rising costs of living, this increase will help lighten the burdens of inflation for New Yorkers while giving businesses time to adjust,” Hochul said in her statement.

Several professors agree the inflation rate is too high, however one Cornell professor, Ryan Chahrour, believes the current level of inflation is a sign of a strong economy.

“[Inflation] is too high, but not by much,” Chahrour said in a WalletHub study. “Overall, inflation -- along with labor market indicators and consumption levels --  are all consistent with an economy that is on solid footing overall.”

George Langelett, a professor of management and economics at South Dakota State University, had another theory.

“The current rate of inflation tells us that demand for products exceeds supply,” Langelett said. “Either demand needs to be reduced, or supply needs to be increased.”

Employees working along Riverdale Avenue had mixed reactions to the $0.50 increase in minimum wage.

“I mean, it’s a nice gesture,” said Leslie Terrero, who works at Greenland Deli Mart at 5670 Riverdale Ave. “Every little bit counts, but when you do the math, it’s really not that much different than before. It’s not far from what I already earn.”

Despite this, Terrero, who lives with a roommate in Yonkers, is still thankful for the increase.

“If you really think about it, there are people working in New York and across the country who don’t even make minimum wage to begin with,” she added.

New York City has the highest inflation rate of any U.S. city with rents that are already sky high.

“I don’t really like it,” said Sunshine Nails owner Jessica Kim, speaking on behalf of her staff. “It doesn’t do any good.”

Overtime pay (for work over 40 hours) is $24.75 an hour for those working in the five boroughs, as well as in Nassau and Suffolk counties on Long Island and Westchester County.

Interviewees declined to share how much they pay in monthly rent, as they wished to maintain privacy.

Currently, the average rent in Riverdale is $2,733, which is more than 75 percent higher than the national average.

In 1970, when the minimum wage was $1.85 and the median monthly rent was $108, according to a New York Times article from 1973, an individual had to work roughly 58 hours to make rent.

At the current minimum wage rate of $16.50 and the median monthly rent in the Bronx at $2,900, that same person would now have to work more than triple those hours in today’s economy.

But some workers are thankful.

“I think it had to be done,” said Eddie Arnaud, who works at Yukka Latin Bistro, also located on Riverdale Avenue. “People work hard days and long hours and they need to be compensated for that.”