Oregon's minimum wage will increase from $7.80 to $7.95 per hour on January 1, 2008, the Oregon Bureau of Labor and Industries announced earlier this year. The increase reflects the rise of the cost of living as defined by the Consumer Price Index and is mandated by Ballot Measure 25, approved by voters in 2002.

The increase means an extra $312 a year and a total annual income of $16,536 for a full-time minimum wage worker. The federal poverty line for a family of three is $17,170.

"Adjustments to the minimum wage are essential for keeping the lowest-paid workers from falling further behind, but they are not a ticket out of poverty for most families depending only on a minimum wage job," said OCPP policy analyst Michael Leachman.

In 2006 about one out of every 15 working families with children remained poor despite their work effort, Leachman said.

With the 2002 passage of Measure 25, Oregonians voted to increase the state's minimum wage from $6.50 to $6.90 per hour effective January 1, 2003, and to tie it to inflation, as defined by the August Consumer Price Index.

In 2008, Oregon will have the nation's third-highest minimum wage, behind Washington ($8.07), California ($8) and Massachusetts ($8). Oregon's minimum wage will remain ahead of the national minimum wage of $5.85 per hour, scheduled to increase to $6.55 per hour on July 24, 2008.