To help city contractors keep up with the Bay Area’s high cost of living, San Jose will now tie their pay directly to the rate of inflation — a move that increases wages for some of the city’s lowest paid contract workers.
The San Jose City Council has unanimously approved the change for janitors, security staff and other city contract workers whose pay stagnated while Bay Area prices climbed 2.5% in the year ending February 2026 — 5.2% higher than two years ago, according to federal data.
Workers currently earning the city’s living wage of $26.73 per hour are expected to see increases of roughly $0.70 to $1.00 per hour effective July 1, with no backpay. City staff said the budget impact would be minimal, as most contractors are already paid above the new floor…