SB 525 IHSS Wage Update 2026: Healthcare Minimum Wage Guide

By the Unified Savers Editorial Team

This information is based on official California DSS guidelines and is reviewed for accuracy. For case-specific legal advice, consult a qualified attorney or your local legal aid organization.

California’s SB 525, the Healthcare Worker Minimum Wage Act signed by Governor Newsom in October 2023, schedules an IHSS wage floor increase to $21.00 per hour effective July 1, 2026. Providers in approximately 20 lower-wage counties — where IHSS rates currently sit between $16.50 and $20.00 — stand to see their largest legislatively mandated raise in a single step. Counties already paying above $21.00 are unaffected by the July 1 floor but remain bound by their own collective bargaining schedules.

SB 525 was the product of years of organizing by healthcare worker unions, including SEIU 2015, and applies to a broad range of healthcare settings: hospitals, clinics, skilled nursing facilities, dialysis centers, and IHSS providers. The law created a staggered implementation schedule — recognizing that the fiscal impact varies widely by employer type — with different start dates and phase-in trajectories for each category of healthcare worker.

How SB 525 Applies to IHSS Specifically

IHSS providers fall into the category SB 525 defines as “covered healthcare facility workers providing services through Medi-Cal.” This category carries a specific wage schedule:

These are statewide minimums. Counties that have negotiated higher rates through SEIU 2015 collective bargaining agreements — such as San Francisco ($23.00), Santa Clara ($22.00), and Marin ($21.50) — are not reduced to the SB 525 floor; the higher county rate prevails.

Note: Governor Newsom’s 2024–25 budget paused one phase of SB 525 implementation for some healthcare facility types due to the state’s projected deficit. IHSS was not subject to the same pause — the IHSS schedule above reflects what was in effect going into fiscal year 2026–27. Providers should confirm their county-specific rate with their IHSS office or SEIU 2015 chapter.

Which Counties See the Biggest July 1 Gains

Counties where IHSS providers currently earn less than $21.00/hour will have their rates brought up to the $21.00 floor on July 1, 2026. Based on current wage data, this includes:

Central Valley and rural counties: Fresno ($17.00), Kern ($16.75), Tulare ($16.50), Kings ($16.50), Madera ($16.75), Merced ($17.00), and Stanislaus ($17.25) are among the counties where the SB 525 increase represents the most significant gain — in some cases over $4.00 per hour.

Inland Southern California: Riverside ($17.50) and San Bernardino ($17.50) providers will also move up under the floor.

Mid-tier counties: San Diego ($18.50) and Orange County ($18.00) will reach $21.00/hour, representing a $2.00 to $2.50 raise for providers in those counties.

For a Fresno County IHSS provider currently earning $17.00/hour and working 40 hours per week, the July 1 increase to $21.00 represents approximately $660 more per month in gross wages.

How the Raise Is Funded and When Providers Will See It

The SB 525 wage floor is funded through a combination of county general funds and increased federal and state Medicaid reimbursements. Federal Medicaid cuts currently advancing through reconciliation could affect the state’s ability to fully fund future SB 525 phase-ins — providers should monitor this closely. Counties are required to adjust IHSS provider wages to meet the floor by the effective date and to apply the increase retroactively for any partial pay periods that span July 1.

When you will see it in your paycheck: For providers paid on a bi-weekly schedule, the first paycheck fully reflecting the $21.00/hour rate will typically arrive in mid- to late-July 2026, depending on your county’s pay cycle. If your paycheck for hours worked after July 1 does not reflect the new rate, contact your county IHSS office and your SEIU 2015 representative immediately.

What SB 525 Does Not Cover

Overtime pay: SB 525 sets the base wage floor but does not change California’s overtime rules for IHSS. Providers working more than 40 hours per week for the same recipient, or across multiple recipients, remain entitled to 1.5x overtime pay under existing California labor law. See our IHSS Overtime Rules guide.

Travel time between recipients: SB 525 does not address reimbursement for time spent traveling between IHSS recipients. That remains governed by California labor law and, where applicable, SEIU 2015 county contracts.

Non-IHSS home care workers: SB 525 covers IHSS providers. Workers employed directly by home care agencies through other funding streams may fall under different implementation timelines.

The Road to $25 and Beyond

The $23.00/hour SB 525 ceiling in 2028 is distinct from SEIU 2015’s “Road to $25” campaign, which advocates for a statewide IHSS minimum wage of $25/hour — $2.00 above where SB 525 currently ends. Union negotiators have framed SB 525 as a floor, not a ceiling: counties remain free to negotiate wages above the statewide minimum.

Several Bay Area counties are already above the 2028 SB 525 level. Whether SB 525 will be amended to extend toward $25 — or whether a separate bill will establish that floor — is expected to be a central legislative priority for SEIU 2015 in the 2027 session.

For IHSS providers in Central Valley and Inland Southern California counties, the July 1, 2026 increase is the most direct and immediate impact: check your paycheck in mid-July and contact your county office or union representative if the new rate is not reflected. You can verify your county’s current rate with our IHSS pay rate guide for 2026.

For more IHSS provider payment guides and wage information, visit Unified Savers.

Related articles: IHSS Pay Rate California 2026 by County · SEIU 2015 Road to $25 Wage Campaign · IHSS Provider Paycheck Guide · IHSS Union Benefits Through SEIU 2015 · California 2026 Budget Threats to IHSS