It’s the first minimum wage in Montana in more than a decade and it starts January 1, 2023.

The minimum wage will increase from $9.20 per hour to $9.95 per hour, according to the U.S. Department of Labor.

Montana law requires the minimum wage be adjusted annually based on changes in inflation.

Those changes are measured by the Consumer Price Index all Urban Consumers (CPI-U) from August of the year in which the calculation is made. That calculation is then rounded to the nearest $0.05.

Montana voters approved initiative 151 in 2006 which increased the minimum wage by $1.

The voter approval also instituted an annual adjustment to account for inflation.

The current federal minimum wage is $7.25 per hour and many states have higher minimum wage levels.