In 2003, San Francisco voters approved a proposition calling for annual minimum wage adjustments based on price inflation in the region.
On Jan. 1, hourly minimum wage for workers in the city will increase to $10.24 -- a 3.2 percent increase from the current minimum of $9.92.
In comparison, the federal minimum wage is $7.25, and California's is $8.
"This wage increase will help the city's lowest-paid workers to keep pace with inflation and also protect consumer spending of San Francisco's working families, which will be a boost to our local economic recovery efforts," Lee said in a statement.
This month, the city is mailing multilingual posters announcing the new rate to about 45,000 businesses in San Francisco. Employers are required to post the notices at their workplaces.
More information about San Francisco's minimum wage laws is available at www.sfgov.org/olse/mwo or by calling the city's Office of Labor Standards Enforcement at (415) 554-6292.