• 1,143 city workers see higher $21.45 hourly rate reflected in paycheck today
• Mayor signed Executive Order in March to solidify her commitment to ensure that all fulltime city workers earn enough to meet life’s basic needs
• Additional $7.3M cost covered in current city budget, will have no impact on services
• Average yearly salary increase is $6,400

Mayor Mary Sheffield joined today with several of the 1,143 city employees who today received their first paycheck under the Mayor’s livable wage order.  In March Mayor Sheffield ordered that all city employees be paid no less than $21.45 per hour ($44,616 annually) to ensure they earn enough to cover life’s necessities, including food, housing, transportation and taxes, without requiring public assistance.

“This is an important day in city government and a bigger day for more than 1100 city workers,” said Mayor Sheffield. “Today these hard-working salt truck drivers, park maintenance workers, water department employees and others can breathe easier knowing that they don’t have to sacrifice or work a second or third job, just to get by. I am so proud that the City of Detroit is leading on this issue.”

The new livable wage applies to all full-time, budgeted positions in departments under the executive branch of city government, as well as the Detroit Water & Sewerage Department. It does not apply to 36th District Court or Detroit Public Library employees since each is run independent of central city government.

DDOT employee Kazha Freeman, a mother of four who recently returned from maternity leave, said that the $4-per-hour increase in her pay thanks to the Livable Wage is going to take a great deal of stress off of her and allow her to better focus on caring for her daughter.

“Getting this increase in my pay is going to make a huge difference for my family,” said Freeman. “It’s going to allow me budget better to pay my bills on time and help me to make sure that I’m providing my children what they need. I am so grateful for this blessing.” 

According to an HR study as part of the Mayor’s Executive Order, the additional cost for paying these employees a livable wage is $7.3 million in the current budget year, which is consistent with initial projections.  The cost is fully covered in the city’s current budget and will not affect any city services.

Based on a recommendation in the HR report that was not part of the original Executive Order, the city also will be raising the pay of several supervisors, who also had been earning at or below the livable wage to ensure that supervisors earn more than the employees they supervise. The city is using a tiered approach to raise supervisor pay an additional between 2% and 8% based on their level of supervisory responsibility.

HR Director Starr estimates that nearly 70% of employees who are benefitting the livable wage increase live in the city of Detroit.  

Among the city departments whose workers it is expected would benefit most include:

• General Services Department – 412
• Police Department - 234
• Department of Public Works - 135
• Building Safety, Engineering & Environmental Department - 77

The increases would not take the place of any standard collective bargaining processes.

Why a livable wage?

Studies have shown that adequate compensation improves employee retention, reduces turnover costs, enhances organizational effectiveness, and workforce stability. When employees are compensated adequately, it fosters a healthier and more positive work environment, where employees feel valued, motivated, and able to perform at their best.

“The City of Detroit is committed to attracting, developing, and retaining brilliant talent in order to provide exceptional services for the City, its residents, visitors, and businesses alike,” Mayor Sheffield stated in her Order. “To uphold this commitment, it is critical that each City employee earn a living wage.”

While Detroit has made significant gains in average household income - rising from $27,000 in 2014 to $39,000 in 2025 - the city's poverty rate has struggled to stay below 35%, due to the increased cost of living. US Census Bureau numbers released last year showed Detroit's child poverty rate had risen to just above 50%.  

To start to combat the issue, Sheffield's first move as Mayor was to announce the RxKids program would launch in Detroit, providing cash assistance to the family of every child born in Detroit during pregnancy and the baby's first six months of life. Since the program launched one month ago today, hundreds of Detroit families are already benefitting from the program.

Mayor Sheffield with employees of the Building Safety, Engineering & Environmental Department who today received their first paycheck under the Mayor's Livable Wage initiative. Several members of the department received $12,000 pay increases to bring them up to the Livable Wage standard of $44,616 per year.  

Mayor Sheffield with employees of the General Services Department.