Arizona’s minimum wage will rise to $13.85 an hour, up from $12.80 an hour, starting Jan. 1, 2023.

Annual increases are mandated by Proposition 206, which Arizonans approved in 2016. That ballot measure steadily bumped up the minimum wage from $8.05 an hour in 2016 to $12 an hour by Jan. 1, 2020. The state’s minimum wage is now tied to inflation, as measured by the Consumer Price Index for urban workers.