ANN ARBOR, Mich. (Michigan News Source) – The city of Ann Arbor is expected to increase its living wage in April, boosting it to as high at $19.42 an hour.

The “living wage” policy is when a municipality sets wages that are higher than minimum wage laws that contractors must pay their employees to be eligible to bid on projects.

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Critics of living wage ordinances say it inflates the cost on taxpayers who are supporting higher-than-market value wages.

Ann Arbor made city contractors pay $17.08 an hour if they included health insurance and $19.04 an hour without benefits in 2025. That will rise to $17.42 and $19.42 an hour starting April 30. Minimum wage in Michigan is $13.73 an hour.

In addition, Ann Arbor verifies whether contractors are living up to the living wage ordinance and has the ability to order restitution if the contractor didn’t pay a living wage.