Starting Jan. 1, employers who pay minimum wage will have to increase their hourly rates to $9.92, up from the current $9.79, according to Mayor Gavin Newsom's office.
The hike in wages is in compliance with the city's 2003 minimum wage ordinance, which calls for annual rate adjustments based on the previous year's Consumer Price Index for urban wage earners in the San Francisco-Oakland-San Jose metropolitan area.
The San Francisco Office of Labor Standards Enforcement this week is mailing multilingual posters announcing the increase to 100,000 locally registered businesses.
There was no raise in minimum wage in 2010.
The last raise in 2009 increased wages from $9.36 per hour to the current $9.79 hourly. Minimum wage increased each year between 2004 and 2009, according to the Office of Labor Standards Enforcement.