WASHINGTON Feb 12 U.S. President Barack Obama
will sign an executive order on Wednesday to raise the minimum
wage for federal contract workers to $10.10 an hour starting
next year, the White House said.
Obama announced during his State of the Union address last
month that he intended to take executive action to raise wages
for federal contract workers, but the White House had not said
when he would do so.
The order will affect workers starting on Jan. 1, 2015, and
applies to new contracts and replacements for expiring
"The executive order the president will sign today will
benefit hundreds of thousands of people," the White House said
in a statement.
"It will also improve the value that taxpayers are getting
from the federal government's investment. Studies show that
boosting low wages will reduce turnover and absenteeism, while
also boosting morale and improving the incentives for workers,
leading to higher productivity overall."