The Oregon Board of Labor and Industry announced on Wednesday that the state’s minimum wage will increase to $9.25 per hour starting on Jan. 1.

That puts Oregon $2 above the federal minimum wage of $7.25 and 7 cents below Washington, the state with the highest minimum wage.

The announcement comes at a time when wages and cost of living are making headlines around the state and nation.

City councilors in Seattle passed a $15 minimum wage earlier this year, which takes effect April 15, 2015. A group is lobbying for similar legislation in Portland.

The labor department estimates that 21 percent of the state’s employees work in the hospitality and leisure sectors — that’s you, sandwich-makers and dish washers. Retail accounts for the second most minimum wage workers at 10 percent.

The Register-Guard reports that Labor Commissioner Brad Avakian plans on pushing the Oregon Legislature to re-think the way it sets minimum wage — right now the state’s House of Representatives and Senate tie the number to annual inflation growth. Avakian argues that a minimum wage of $12 would be necessary to lift a family of four above the poverty line, nearly 30 percent more than the current rate.

For hourly part-time employees working 20 hours per week, the Oregon increase amounts to a boost of $6 per biweekly paycheck before taxes. That’s a little more than the price of that venti double-shot pumpkin spice latte you just bought.

Follow Eder Campuzano on Twitter: @edercampuzano