• In her budget address, Mayor includes funding to ensure all fulltime city employee are a paid accepted livable wage of $21.45/hour or $44,500 annually
• Mayor signs 3rd Executive Order, requiring HR Director to submit a report within 60 days detailing all positions currently paid less than livable wage
• Increased wages would go into effect during the 2nd pay period in July 
• Move follows other poverty-reduction focused moves, including launching RxKids in Detroit, hiring Dr. Luke Shaefer to leave Mayor's efforts to address poverty at is causes 

Mayor Mary Sheffield joined today with city employees and union representatives to announce another bold step in her pledge to address poverty in Detroit by ensuring that every fulltime city employee is paid a livable wage. The Mayor revealed her plan at city council as she presented her first proposed budget.  

The Mayor’s proposal would effectively raise the salaries of hundreds of city workers to a minimum of $21.45 per hour, which according to the Living Wage Institute translates to $44,500 per year. A livable wage is defined as the minimum hourly rate that a full-time employee must earn to cover basic necessities, such as housing, food, healthcare, transportation, and taxes, without requiring public assistance. 

Mayor Mary Sheffield announce a livable wage increase for all city employees. Photos: Sydney Bowden.

“Detroit can’t say it is taking poverty reduction seriously as long as it is not paying a significant number of its employees a livable wage,” said Mayor Sheffield. “It has been because of the hard work of our city employees that our financial position is much stronger and as Mayor, if feel deeply that it would be morally wrong to pay these employees anything less than a livable wage. This is an urgent priority.”  

The Mayor today issued an executive order requiring HR Director Denise Starr to produce a report in the next 60 days detailing every fulltime position currently being paid less than $21.45 per hour. With that information, the necessary salary increases will be reflected in every eligible city employee’s paycheck beginning the first full pay period in July, which coincides with the start of the new fiscal year.  

The HR study also will determine what percentage of current city employees who will see wage increases are Detroit residents, but HR Director Starr estimates that nearly 70% of employees who would benefit live in the city of Detroit.  

Among the city departments whose workers it is expected would benefit most include the General Services Department, Department of Public Works, Municipal Parking Department and Building Safety, Engineering & Environmental Department (BSEED).  Employees from each department spoke in support of the plan, as did representatives of key city employee unions, including the Teamsters and AFSCME.  

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

“Madam Mayor has made good on her promise to ensure that a livable wage is something that our citizens and employees will be able to care care of their families, be able to afford to have eggs and milk and also be able to take care of their children.” DeAngelo Malcolm, AFSCME said.

(Right) DeAngelo Malcolm, AFSCME. (Middle) Madam Mayor (Left) Joe Valenti President of Teamsters Local 214  

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 increase cost of living. US Census Bureau numbers released last year showed Detroit's child poverty rate had risen to just above 50%.  

“It’s going to be a breath of sunshine for me. I’ve been working two jobs, just trying to balance out life. I’ve been helping my son with his son, and this is just going to be great.” ShaDawn Adams, a General Services Department (GSD) employee said.

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.  

Sheffield also announced the appointment of Dr. Luke Shaefer as the city's Chief Executive of Health, Human Services and Poverty Solutions.