Executive Policy Summary

Pennsylvania Minimum Wage Increase

Pennsylvania’s new minimum wage law, signed by Governor Ed Rendell as Act 112 of 2006, increased the federal minimum wage of $5.15 to $6.25 an hour on January 1, 2007, with an additional increase to $7.15 an hour beginning July 1, 2007. It is the first increase to the Commonwealth’s minimum wage since 1988.

For answers to frequently asked questions visit the Pennsylvania Department of Labor and Industry website at: http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=64690

Tax Updates

Also effective on January 1, the City of Philadelphia reduced the local income tax withholding rate for employees who reside or work in the City. For Philadelphia residents, regardless of where they work in Pennsylvania, the withholding rate has been reduced from 4.3010% to 4.2600%. For employees who work in Philadelphia but live elsewhere, the withholding rate reduction dropped from 3.7716% to 3.7557%.
 
In 2007, the Gross Receipts side of the City’s Business Privilege Tax drops from .1665% to .1540% and, in 2008, will drop further to .1415%.
 
A New Year of Public Policy Events

January 18, marks the inaugural “A Conversation with the Governor” featuring The Honorable Ed Rendell at 4:00 p.m. at the Philadelphia Marriott Downtown.

City of Philadelphia Mayor John Street’s Budget Address is set for January 23, at 10 a.m. in City Council Chambers, Room 400, City Hall.

Pennsylvania Governor Rendell’s Budget Address is February 6, at the State Capitol in Harrisburg.
 
February features two big events hosted by the Chamber: the Mayor’s Luncheon on February 14 at the Sheraton City Center and a Congressional Staff Luncheon on February 22 at the Hyatt Regency Philadelphia at Penn’s Landing.
 
For more information about these events, please contact Anselm Sauter at 215-790-3613 or asauter@greaterphilachamber.com.