Editor’s note: This story has been updated to correct how California’s minimum wage ranks among other states.

SAN DIEGO — With the calendar changing over to 2023, a bump in pay has taken effect for many workers in the City of San Diego.

The minimum wage for San Diego increased from $15 an hour to $16.30 an hour starting on Jan. 1, 2023.

Employees who perform at least two hours of work in one or more calendar weeks within the City of San Diego’s boundaries will see the minimum wage increase, according to city officials.

The increased minimum wage applies to all businesses and industries, city officials said. Tips and gratuities do not count toward the payment of minimum wage.

The increase in wages is in line with San Diego’s Earned Sick Leave and Minimum Wage Ordinance which was approved in 2016.

Updated notices for posting at the workplace are available on the city’s Minimum Wage Program web page. Every employer must post these notices in a conspicuous place at any workplace or job site.

In 2023, San Diego will stay ahead of the State of California’s minimum wage, which increased from $15 an hour to $15.50.

California’s minimum wage is the among the highest in the U.S., as of Jan. 2023, trailing only Washington ($15.74) and Washington D.C. ($16.10).

San Diego County residents who work outside of the City of San Diego limits fall under the California state minimum wage.

Some business owners said they are just getting through the new cost.

“We’re basically absorbing it, because of the way the economy is starting to pick up,” said Jim Martin, owner of Dave’s Flowers. “When it first jumped from $10 to $15 then we felt a little bit of pressure on that type of thing.”

Some people FOX 5 spoke to say the increase is good because of inflation, but others say the new minimum wage is still not enough to live in San Diego and that some still must work multiple jobs.