The Polis administration and the union that represents Colorado’s state employees agreed on a 5% pay hike in 2023, the Governor’s Office announced on Thursday. 

The pay hike, if funded, will take effect on July 1, 2023.

Employees will also get a pay hike of 3% starting in July 2024, according to the collective bargaining agreement signed by Gov. Jared Polis and Colorado WINS.

The agreement also increases the minimum wage to $15.75 an hour.

Polis and Colorado WINS unveiled the agreement – an update to the original deal signed last year – less than two weeks after the governor successfully defended his seat in the Nov. 8 elections and Democrats improved their partisan edge in the state House and Senate. 

“This agreement will help us fill open state positions, supports our hardworking state employees, and is the latest in a series of actions we are taking to provide even better and more efficient services to the people of Colorado,” Polis said in a news release. “This agreement helps the state recruit and retain talented people, filling important state positions including correctional officers. We are proud of our work to improve efficiency and deliver greater value.”

Funding for the pay hike was included in Polis’ budget request to the legislature, the Governor’s Office said. 

Colorado WINS Executive Director Hilary Glasgow said low staffing levels and high turnover rates have put state employees, notably those in the health and safety arenas, and communities at risk.

“This new agreement with the state provides critical tools for attracting and retaining employees in essential positions across our state,” Glasgow said.

The agreement also includes implementation of a “step pay system” to help Colorado workers maintain competitive wages over the course of their careers. 

“As part of our commitment to diversity, equity and inclusion, we need to ensure that raises in all state agencies are implemented fairly. I look forward to seeing that commitment through with the implementation of step raises that will eliminate biases and improve our ability to attract and retain staff in key positions,” Colorado WINS President Skip Miller said.

The agreement received the endorsement of key members of the Joint Budget Committee, the panel in charge of shaping next year’s state budget. 

“Our state employees make our state work effectively and efficiently and are key to our success. Directing resources to address pressing needs and to ensure Coloradans are able to get the services they need is a top priority and I am glad this agreement is moving forward,” Rep. Shannon Bird, D-Westminster, said in a news release. 

Added Rep. Emily Sirota, D-Denver: “To continue moving forward as a state, we must be able to attract new workers and ensure all state workers have a good paying job where they can thrive and enjoy their livelihoods. This agreement is a great step toward ensuring Coloradans receive the services they deserve and state workers have more opportunity.”