Pay Increase

The minimum wage in Illinois is now $6.55 per hour. Isn't that great for the low skilled? No.

As the wages go up, employers hire less and the unskilled or nominally skilled are crowded out of employment. With industries like airlines and car builders cutting back, there will be a glut of skilled or semi-skilled laborers taking these lower paying jobs.

Also the employer pays the match of Social Security and Medicare withheld which is 7.65%. Plus, he/she covers unemployment both state and federal. In Illinois, the minimum is 1.6% for both. If the industry is a certain kind and/or claims are high against the employer, the state rate can be triple that easy.

So, the $6.55 per hour costs the employer a minimum of 9.25% more for a total of $7.16 per hour. A 40-hour week costs at least $286. That's without benefits such as paid vacation, health, life insurance, disability, workman's comp, pension or retirement.

'til later