SAN DIEGO — Many workers in San Diego will see a boost to their pay starting next year, with the city set to increase the minimum wage to $16.30.

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 a minimum wage increase from $15 to $16.30 an hour, according to city officials.

The increase in wages is in accordance with the city’s Earned Sick Leave and Minimum Wage Ordinance that was approved in 2016.

“With the cost of living rising, this increase could not come at a more needed time for workers and working families,” said a quote attributed to Mayor Todd Gloria. “This increase means a better ability to make ends meet, put food on the table and spend in our local businesses.” 

The ordinance applies to all industries and businesses. Tips and gratuities do not count toward payment of minimum wage.

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.

The increase comes as San Diegans struggle with high gas prices, rent prices and inflation.

“I am all for employees making a living wage but it’s not a living wage if it forces us to charge our customers, who we value, making us raise the prices. There’s no choice but we have to raise the prices,” Kevin MacLeod of Bullpen Bar & Grill told FOX 5 Friday.

“I think some companies underpay their workers too and not specifically naming any companies but just some of them really do. Any way possible for them to increase their wages, it’s great. It’s sad to see some people struggling,” said customer Anthony Garcia.

But University of San Diego Economics Professor Alan Gin says the increase may not help much.

“In a normal situation, that would be pretty significant but given the tight labor market that we have here in San Diego, I think it’s not going to have much impact at all because wages have been rising rapidly and most jobs now are above the minimum wage,” says University of San Diego Economics Professor Alan Gin

MacLeod says he worries he will likely have to pass the wage increase onto his customers.

“We always want people to be able to afford to come here. We want to make sure they leave full and obviously have reasonable prices, but they’re making us be unreasonable and raise our prices.”

FOX 5’s Liberty Zabala contributed to this report.