Minimum Compensation Ordinance

Most City contractors and tenants (including at the Airport) must provide their covered employees with (a) no less than the MCO hourly wage in effect; (b) 12 paid days off per year (or cash equivalent); and (c) 10 days off per year without pay per year.

Effective July 1, 2025, the Minimum Compensation rates will increase as follows:

• For-Profit rate increases to $21.54 per hour.
• Non-Profit rate increases to $21.55 per hour. Non-Profit rate will increase to $23.00 on January 1, 2026.
• Public Entities rate increases to $22.50 per hour. Public Entities rate increases to $23.00 per hour on January 1, 2026.

The Minimum Compensation Ordinance (MCO) covers most City service contractors as well as tenants at the San Francisco International Airport.

The law generally requires covered employers to provide to their covered employees:

1. No less than the MCO hourly wage in effect;
2. 12 paid days off per year (or cash equivalent); and
3. 10 days off without pay per year.

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