Article Written By: JR Robinson

Created By: Erika Sugarmon
Sponsored By: Erika Sugarmon

Shelby County is set to raise its minimum wage for all permanent county employees to a living wage of $20.77 per hour, effective July 1, 2025, pending approval of the Fiscal Year 2026 budget. This important ordinance, prepared and moved by County Commissioner Erika Sugarmon, aims to ensure that every county employee earns a wage sufficient to meet basic living expenses.

What the Ordinance Does

The ordinance amends Article V, Section 14-136 of the Shelby County Code of Ordinances to raise the minimum wage from the current $16.01 per hour for permanent full-time employees (and $18 per hour for temporary employees) to $20.77 per hour. This figure reflects the “living wage” for a single adult with no children living in Tennessee, based on the Massachusetts Institute of Technology (MIT) Living Wage Calculator.

Why the Change Is Necessary

Shelby County recognizes the need to provide fair and adequate compensation so employees can cover critical costs such as food, housing, healthcare, transportation, and other essentials. This living wage increase supports the county’s goals to:

• Improve employee retention and morale
• Reduce dependence on public assistance programs
• Strengthen the local economy by increasing disposable income

Who Is Affected

The wage adjustment applies to all permanent Shelby County government employees, both full-time and part-time. While not mandatory, the ordinance encourages contractors and subcontractors working with the county to raise wages to this standard to promote equitable treatment of all workers.

Budget and Implementation

Implementation of this wage increase is subject to the availability of funds in the FY 2026 Operating Budget. Shelby County Administration has been directed to allocate the necessary funding while prioritizing the maintenance of essential services and avoiding any increase in property taxes. Additionally, the ordinance mandates an annual review of the living wage based on the latest data from the U.S. Department of Labor, ensuring wages keep pace with changing economic conditions.

Transparency and Accountability

Shelby County Administration will report progressive updates on the ordinance’s implementation and fiscal impact as part of the FY 2026 budget process, fostering transparency and accountability for taxpayers and county employees alike.

Understanding the Living Wage Calculation

The living wage is meticulously calculated using data on essential costs, including housing, food, childcare, healthcare, transportation, internet and mobile services, and civic participation. Taxes are also factored in, ensuring the wage covers take-home pay needs. This comprehensive approach goes beyond the state minimum wage of $7.25 per hour and even exceeds the previous county wage minimum, reflecting the true cost of living in Shelby County.

This ordinance represents a significant step toward economic stability and fairness for Shelby County’s workforce. Residents, employees, and policymakers can look forward to the positive impacts this wage adjustment brings to the community.

Click here to read the full Ordinance No. 572 and the accompanying Shelby County Code amendments.