Alaska’s minimum wage is going up.

The Alaska Department of Labor said the wage will rise by a nickel, from $9.84 per hour to $9.89 per hour on Jan. 1.

In 2014, Alaska voters approved a ballot measure that increased the state’s minimum wage and called for automatic inflation adjustments on an annual basis.

Those adjustments are based on the Consumer Price Index for Anchorage during the preceding calendar year. Inflation increased 0.5 percent, so the wage will rise by 0.5 percent. Rounded upward from 4.92 cents, that means a 5-cent increase.

Alaska’s minimum wage applies to all hours worked in a pay period, regardless of whether a worker is paid by the hour, by the number of pieces of work done, or otherwise. Regardless of how a person is paid, they must receive at least $9.89 per hour starting Jan. 1.

Tips do not count toward the minimum wage in Alaska. State law also mandates that public school bus drivers be paid at least twice the minimum wage.

• Contact reporter James Brooks at jbrooks@juneauempire.com or 523-2258.