President Barack Obama plans to announce that he will issue an executive order raising the minimum wage for federal contract workers with new contracts to $10.10 an hour, the White House said Tuesday.
In his State of the Union address Tuesday night, Obama will call on Congress to pass a bill that would apply the raise to existing workers, and peg future increases to inflation.
The raise – up from $7.25 - would benefit employees including janitors and construction workers.
"Boosting wages will lower turnover and increase morale, and will lead to higher productivity overall," the White House statement said. "Raising wages for those at the bottom will improve the quality and efficiency of services provided to the government."
Around 60 percent of workers benefiting from a higher minimum wage are women, the statement said.
The statement came as an NBC News/Wall Street Journal poll found that 68 percent of Americans say the country is either stagnant or worse off since Obama took office.